Net proceeds from sale of your property, is an interesting article relevant to the home selling process. For more specific information about net proceeds from the sale of your property, continue reading below.
Prior to listing your home, a realtor should provide an estimate of net proceeds to the seller based on market analysis of your home. After receiving an offer, revised net proceeds should be provided to you based on the terms of the offer. In each state, the rules and cost associated with selling property may differ, therefore, it is best to employ the services of a realtor who is trained and understands which costs are normally buyer and seller expenses. Also, remember, most expenses can be negotiated between buyer and seller. Following is a list of expenses a seller may experience when selling their home:
· Payoff of your current mortgage balance
· Penalty charged for early payoff of mortgage balance
· Payoff of liens and equity loans on the property
· Recording fees charged to show all debts have been fully paid on outstanding loans
· Commissions paid to both the listing and selling agents.
· Notary fees paid to identify and insured all documents are executed correctly.
· Seller agrees to pay buyer closing cost. This normally is either a percentage or a dollar amount of the buyer’s closing cost.
· Escrow fees paid to an intermediary, such as a title company. This insures all monies are property handled and distributed to buyer, seller, and lender, etc.
· Title search and title policy fees. Title companies search everything that may affect the title of the property, such as, mortgage, liens, and easements, etc. Then issues a title policy that insures the buyer will have good title to the property.
· Lender required repairs, or a cash settlement negotiated with the buyer.
· If the property is infested with termites, there probably will be a cost for treatment.
· Many times the seller will be required to pay for a one year home warranty. This type of coverage is for mechanical breakdown of equipment within the home.
In order to avoid being surprise, consult with your realtor about any other expenses you may incur when selling your home. Another precaution you may want to consider is having an inspection prior to putting the home on the market.