Calculate How Much You Will Make From Your Home Sale: Selling your home can be a stressful endeavor, especially if you’re unsure about how much you are going to make at the end of the process. The amount of money you walk away with doesn’t have to be a mystery.
We created a simple equation that only takes a few minutes and sheds light on the money you stand to make off of your home sale when all is said and done. We’ll account for the money you put down on the house, the amount it takes to pay off the remaining balance on your home, and the fees you’ll have to pay during the actual selling process.
Calculate How Much You Will Make From Your Home Sale
We’ll use a house that recently sold in December 2016 in the Silver Lake neighborhood as an example. The house is 2 bedrooms, 2 bathrooms with a wraparound porch out front. It’s 1,576 square feet and the lot size is 5,222. The home sold for $1,125,000 at $714 a square foot.
You can guess at how much your home is going to sell for by getting an estimate from a home value estimator or by getting an estimate from your real estate agent.
Let’s imagine a fictional couple selling the house: Peanut Butter and Jelly Sandwich. We’ll imagine that the Sandwiches bought the home back in June 2011 at fair market value for $721,000.
What We Know About the Sandwiches:
-They had a 30 year mortgage
-They had a 3.5% interest rate
-They put down a standard 20% to get a conventional mortgage loan
-That means their monthly mortgage payment would be $3,310 (According to NerdWallet)
-At the time the house sold:
Sandwiches Have Paid: $118,272.90
A Breakdown of What the Sandwiches Owe:
Interest Rate: 3.5%
Monthly Payment: $3,310
Principal (Loan Amount They Took Out): $576,800
Months They’ve Been Paying the Loan: 66
The Sandwiches Still Owe: $458,527.10 on the house
You can look at your last mortgage statement to figure out what the remaining balance of your home loan is or run your numbers through an online mortgage balance calculator.
Now, Let’s Consider the Money the Sandwiches Spent on the Home Sale:
-Home Staging, Small Upgrades, Cleaning: $1,000
-Property Tax: $5,718/year divided in half: $2,859
-Transfer Tax: $5.60 (for the city of Los Angeles) per every $1,000 = $6,300
-Capital Gains Tax (If the couple made over $500,000 on the sale): $0
-Attorney Fees: $1,000
-Agent Commission: At 6%, this would be: $67,500
-HOA Fees: $0
-Total Cost to Sell: $78,659
*These numbers are rough estimates. Speak with your real estate agent to get a better idea of what costs you will actually incur during the process of selling your home.
If we take all of these costs into consideration, the Sandwiches would ultimately make:
The Total Sale Price of the Home: $1,125,000 Minus:
–$458,527.10 (Remaining Balance Due on the House)
–$78,659 (Total Cost to Sell)
-$144,200 (Down Payment on House)
The Sandwiches Made a Total of: $443,613.90 on their home sale.
For an immediate Pre-Approval on this property please contact Joe Tishkoff at Skyline Home Loans today.
You can use this process to figure out how much you will make selling your own house. Questions about specific costs during the selling process? Give us a call at The Shelhamer Real Estate Group, we’re always here as a soundboard to your home buying and selling questions!
Your Silver Lake Neighborhood Real Estate Expert
I’m a local real estate agent with The Shelhamer Real Estate Group, and It would be my pleasure to help you find the perfect property to call home in Silver Lake CA, or if you’re thinking about selling a house, condo, or multi-family building in, Los Feliz, Silver Lake, Hollywood Hills, Atwater Village, Echo Park, Mount Washington, or Downtown Los Angeles, it would be a privilege to help you get top dollar for the sale of your property.
Lets chat sometime. 310-913-9477 or contact me.