If you’re thinking of selling your house and need the money from that sale to purchase a new one, how can you budget for your next purchase?
In other words, how do you know how much money you will net?
One simple rule of thumb is to look at the total closing costs on your property. Closing costs can range from 8% to 10% of the sale price. The state likes to get its money – they have what equates to a sales tax, but it’s called a state deed tax. Other closing costs include title fees, courier fees, mortgage recording fees, and more.
In addition to closing costs, you will also have to pay the buyer’s agent’s fees and your listing agent’s fees. Those things can make quite a difference in the amount of money you net after your home sale, and it really depends on the agent that you choose. The right agent should give you a net return on the money that you are paying for their services.
When you work with us, we will also give you a seller’s net sheet. Basically, we will run through what your home will potentially sell for and how much money you should net. That way, you know what you can afford when it’s time to purchase your next home. You can even determine what your new monthly mortgage payment will be.
If you have any questions, give us a call or send us an email. We would be happy to help you!