Friday, February 3, 2023 / by Shane Kilby
How to calculate the amount of money you’ll keep after your home sale.
The market has been changing lately, and many people have been wondering if it’s a good time to sell their homes. If that is you, one factor that will help you make that decision is knowing how much money you’ll get to keep after you sell. Too many people oversimplify this estimate and end up disappointed. I want to help you avoid that.
Start by using a home value estimate calculator. You can access mine here. This is a free tool that shows you an estimate of how much your home is worth. This is not a guarantee, so know that numbers will fluctuate. However, this will at least help you get a good ballpark figure to start with.
After that, figuring out how much of the money from your home sale that you’ll get to keep is about more than just subtracting your remaining mortgage loan balance from the sales price. Many homeowners have unrealistic expectations because they don’t know how to calculate their net proceeds. That is the amount of money you receive from selling a home after the expenses. It’s crucial to factor in the expenses of a home sale.
"Converting your home into a rental could make all of your rental income tax-free."
Some common expenses that come with a home sale include staging costs, closing costs, title fees, attorney fees, transfer taxes, remaining bills, and moving costs. It adds up! That’s why it is very important to take them into account when calculating the amount of money you expect to keep after your sale.
However, know that there are ways to reduce those expenses. If you’re handy, you can DIY projects when possible. You could consider cost-effective staging and get a professional opinion on what changes will actually make a difference in your final sales price. Lastly, it will benefit you to have help from an agent that is an experienced professional. Having a good agent will help you sell your home for the most money possible and greatly increase your net proceeds.
I want you to be able to keep a lot of money after selling your home. If you want my help with selling, or if you have any questions, don’t hesitate to reach out! I look forward to hearing from you.