Net Proceeds When Selling Your Home
Your home’s selling price is not the same as the amount you walk away with. Your net proceeds (the amount of money you will actually receive from the sale) are largely determined by the closing costs, which often don’t show up until the closing date itself. Pedersen Real Estate will provide you with a seller’s net sheet, a document that estimates how much cash you can expect to walk away with after subtracting fees and expenses from the sale price of your home.
The main factors affecting your net proceeds may include:
- Real estate commission (usually around 5% of the price and generally the largest fee involved with selling a home)
- Repair credits
- Homeowner association fees, if applicable
- Credits to the buyer to assist with their closing costs, if applicable
- Any unpaid judgments, plus interest and penalties
- Mortgage payoffs
- City and county transfer taxes (usually around 1-2%)
- Prorated property taxes any any past due property taxes
- Title insurance
- Escrow fees
- Home warranty for the buyer
- Agent commissions (the seller typically pays the commissions for both the listing agent and the buyer's agent)
This list does not include all of the fees that you may have with selling your home, but this gives you an idea of some of the main fees involved.
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