HomeLife Benchmark Realty (Clov)

HomeLife Benchmark Realty (Clov)

Real Estate Q&A: "When I Sell My House How Much Do I Get?"

A lot of homeowners often ask us, “When I sell my house, how much do I get?”

It’s a fairly common question because many homeowners want to make sure that they get top dollar for their home. After all, in most cases, they have sunk a large portion of their net worth into the home and they want to see that it has appreciated over the years.
When it comes to selling your home, there are several fees that you will be expected to pay before you can count your profit.

Commissions
Homeowners dread this word, but it is a fact of life if you want to sell your home through a reputable realtor. Like any job, we don’t work for free, and our expertise often comes with a price tag.
On average, you should expect to pay around 5-6% in commissions. This fee will be paid to your agent’s brokerage and the buyer’s agent’s brokerage.

Prepayment Penalties
You will also have to account for any prepayment penalties you may incur if you pay your mortgage off too quickly.
If there is one thing we can all agree on, banks like to make money and they aren’t in the business of losing it (2008 recession aside).
Most banks will charge you a prepayment penalty if you try and pay your mortgage off too quickly. 
If you are looking to sell your home, call your bank to make sure that you will not have to pay this. In some cases, a prepayment penalty can total tens of thousands of dollars.

Renovations
Depending on what market your home is in, you may have to do some renovations to make it more desirable in the eyes of a buyer.
Small renovations won’t cost you as much, but if you have to do a lot of them, they can quickly add up.
Most times, renovations tend to be profitable, or they will at least provide you a breakeven situation, but this isn’t always the case.
If you are looking to sell your home and need to renovate, we suggest that you check the market conditions to make sure that it is worth your time.

Closing Costs
Keep your wallet open because you still need to pay more.
When you finish selling your home, prepare to pay various fees related to the transfer. These often include lien release documents, recording fees, notary fees, escrow fees, title search fees, and any other legal fees you incur as you prepare to sell your home.

The Rest Is Yours
You can close your wallet now. Congratulations, you get to keep the rest. Don’t be scared off by all the fees associated with selling your home.
If you live in a hot market, there is a good chance that the value of your home has appreciated exponentially over the last decade.
There has never been a better time to list and profit on those years of home value appreciation.
Interested in selling now? Contact HomeLife Cloverdale today. We have been market leaders in the Langley and Cloverdale real estate markets for many years and we are ready to help you sell your home.

 

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