SELLER SCHOOL - THE PROFITS

SELLER SCHOOL - THE PROFITS  Outside of wondering how much their home is worth, the first question I usually get from sellers is, “How much money will I walk away with?” It is important in the planning stages to prepare a net sheet to review the costs associated with the sale and how they affect your bottom line. This will not give you an exact dollar amount as changes in purchase price, closing date, and any concessions will alter that final number, but it will give you a pretty good idea of what you will be walking away with.  In putting together your net sheet, you will want to consider these typical closing costs: Owner’s Title Insurance Policy. Title insurance protects the buyer from any issues arising from defects on title after they purchase the home. While it can be negotiated, this is typically paid for by the seller.  Tax Proration. The seller is responsible for the taxes while they lived in the home. Since taxes are usually paid once a year, this portion will typically be prorated and credited to the buyer at closing. The buyer will then be responsible for paying the full bill. Closing and Recording Fees. The Title Company or other closing entity will usually charge a fee to facilitate the closing of the transaction, and the state will charge recording fees for the sale documents. Real Estate Agent Commissions. In most cases, the seller will pay a commission to the listing agent. The listing broker will pay the buyer’s broker and their brokerage from that commission. While this is not an all encompassing list of fees you may pay at closing, this should get you a good idea of your net on the sale of your home.

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SELLER SCHOOL- TIME TO SELL

“There’s never been a better time to sell!” “You should wait to see if prices keep going up…” “It’s a seller’s market!” “You should wait till spring…” If you have ever mentioned to ANYONE that you are thinking of selling your home, you have undoubtedly been met with plenty of advice – both positive and negative. And while there are many external forces like the housing market, interest rates, or the economy that can influence your decision, the only one that can truly answer if this is the right time to sell is YOU. As you are making the decision to sell, there are a few questions you should answer for yourself.  How much is your home worth? This is always the first step when you being to consider selling your home. Knowing the current market value of your home will help you make an informed decision. So skip the Zestimate and call a knowledgeable real estate broker to perform a valuation on your home. You can also request one on my website at https://sanluisvalleyliving.com/sell What is your current housing market like? While you may hear all about the U.S. housing market in the news, things can be vastly different from local market to local market. Are you in a seller’s market where your home will move quickly? Do you need to plan on extra time or repair funds for a buyer’s market? Talk with your real estate broker to understand exactly what to expect in your market. Will you be subject to capital gains? With the increase in home prices and values in the last two years, you may be sitting on huge chunk of equity in your home which is great for you. However, you may be subject to capital gains tax on the proceeds from your home. Generally, if you have lived in your home as your primary residence for 2 out of the last 5 years, you will not be taxed on the first $250,000 if you are single or $500,000 if you are married. Talk with your tax professional to find out how this may impact you.

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