Sellers: Calculating Your Net Proceeds

When an offer comes in, you can accept it exactly as it stands, refuse it (seldom a useful response) or make a counteroffer to the buyers with the changes you want. In evaluating a purchase offer, you should estimate the amount of cash you'll walk away with when the transaction is complete. For example, when you're presented with two offers at the same time, you may discover you're better off accepting the one with the lower sale price if the other asks you to pay points to the buyer's lending institution.

Once you have a specific proposal before you, calculating net proceeds becomes simple. From the proposed purchase price you can subtract the following costs:

  • payoff amount on present mortgage
  • any other liens (equity loan, judgments)
  • broker's commission
  • legal costs of selling (attorney, escrow agent)
  • transfer taxes
  • unpaid property taxes and water and other utility bills
  • if required by the contract: cost of survey, termite inspection, buyer's closing costs, repairs, etc.

Your present mortgage lender may maintain an escrow account into which you deposit money to be used for property tax bills and homeowner's insurance. In that case, remember that you will receive a refund of money left in that account, which will add to your proceeds.

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October 12 2012 - Fayetteville
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Profile picture for sunnyview
Call me old fashioned, but Cutting and pasting posts is not usually the best way to present information on Zillow from what I have seen. Anyone that is interested can view the whole article on one of many sites.
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October 12 2012
Profile picture for wetdawgs
In addition to Sunnyview's comments, it is also called plagiarism and is very non-professional.

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October 12 2012
Calculating a Sellers net profit consist of many factors. As an Agent of the Seller we must ensure that the Seller understands the factors that will effect his or her net Profit. Some of the factors that can effect net profit depends on the time of the year that a Seller sells their home, there are many others. There are fees that the seller are not particularly aware of. During the Listing process, Agents should really take the time to explain to there potential Seller what factors may come into play.
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October 31 2013
 
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