Selling your home can be a stressful draining and time consuming, 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.
To make things easier for you, our San Fernando Valley Real Estate Agents developed 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. This will 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 San Fernando Valley Home For Sale
We’ll use a house that recently sold in December 2016 in the Tarzana 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 local San Fernando Valley Real Estate Agent.
A couple purchased the home back in June 2011 at fair market value for $721,000.
What We Know About the Couple:
-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 Quick Breakdown of What this Couple Owes:
Interest Rate: 3.5%
Monthly Payment: $3,310
Principal (Loan Amount They Took Out): $576,800
Months They’ve Been Paying the Loan: 66
This Couple 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 this Couple 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. We recommend that you speak with your San Fernando Valley 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, this couple 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)
This Couple Made a Total of: $443,613.90 on their San Fernando Valley Home For Sale.