Selling a house can be a bit of a mystery. There’s the home inspection, the closing costs, and the potential for a buyer to get cold feet. But there are ways to make the whole process as easy and streamlined as possible.
We’re here to help you understand how to get the most money for your home, so you can go from distressed seller to distressed homeowner.
- Understand Your Costs
First things first: There are two main categories of costs that you’ll need to factor in. The first category is your closing costs. These are the expenses associated with selling your house and buying a new one. Closing costs can be a good thing, because they help cover the costs of repairs and other upgrades.
The second category is your net proceeds. This is the money that you’re left with when you sell your house. You can use this to pay off credit cards, debt, or make some extra cash to put towards a down payment or emergency fund.
- Figure Out Closing Costs
The first thing you’ll need to do is figure out what your closing costs will be. These are the expenses that you’ll have to pay out of pocket, whether it’s when you sell your house or when you buy a new one.
These can include things like:
- Private mortgage insurance (PMI)
- Appraisal fees
- Home inspection costs
- Utilities fees
- Taxes
- Utility bills
- Water bills
- Pest control
- Hazardous material removal
If you’re selling your house, you’ll likely have to pay the private mortgage insurance (PMI) on the mortgage for your new house.
If you’re buying a new house, you’ll also pay PMI on the mortgage. However, you may be able to skip this if your lender will cover it. Otherwise, you’ll need to pay it out of pocket. You can calculate your PMI costs by using our PMI calculator.
- Calculate Net Proceeds
Now that you know how much money you’ll have to pay out of pocket for closing costs, you can calculate how much you’ll get left over. The easiest way to do this is to subtract your closing costs from the sale price of your home. For example, if you have a $100,000 house and you need to pay $2,000 for closing costs, you’ll have $98,000 in net proceeds. More information you’ve use this link https://www.dignityproperties.com/we-buy-houses-nashville-tn/.
