Calculating Your True Profits After Selling a Home

Selling a home under the right conditions can definitely help stabilize your finances, but the problem with the entire process is that it can be hard to figure out just how much you’re going to receive.

The difference between a good real estate agent and a great real estate agent is that the great one will give you a net sheet that discloses all of the fees that are going to be keeping you from the money that you’re expecting from the sale of a home.

Since selling a home is such a big deal, it goes without saying that trying to figure out what is actually going to be your net profit can be a little complicated.

First and foremost, you will need to make sure that you really look at the disclosure sheet that you receive. A seller’s closing statement should be created for you. This is simply a balance of credits and debts. The sales price amount is considered a credit, but debits are everything that is associated with selling the property. If you’ve already paid property tax in advance, a prorated amount will be returned to you — after all, you don’t have to pay property taxes for somewhere where you don’t live.

The real estate agent’s commission is naturally a debit, not a credit — but it can be negotiated. Of course, when you look at the amount of work that agents have to do in order to sell a property, you definitely don’t want to undercut the agent at all. Negotiation doesn’t mean trying to squeeze every last dime out of the agent — a fair amount of work deserves fair compensation too, you know!

Now, you might think that this is something that only the seller gets, but your buyer will also have a sheet like this. The only difference is that it’s going to naturally be a little reversed. The sales price is actually going to be a debit and not a credit. If they’ve paid property taxes for you, then that’s going to be a debit on your side and a credit on their side.

Also, your net profit will depend on what the house actually sells for. A lot of homes do not actually sell for the list price, which means that whatever price is negotiated for will be on your sheet.

It can be hard to keep up with all this information, which is why you should definitely have a real estate agent help you work your way to the net profit you will expect after selling your property!