Say you’re trying to sell your home for $300,000. Unfortunately if you sell for that number, you don’t get that exact number in your bank account due to various expenses and fees associated with the transaction.
In this guide, we’ll explore the factors that can affect your proceeds from selling your house for $300K and help you understand how much you can expect to receive.
1. Calculate the Sale Price
The first step in determining how much you’ll get from selling your house for $300,000 is to calculate the sale price. The sale price is the amount agreed upon between you and the buyer, typically based on market value, negotiations, and other factors. In this case, the sale price is $300,000.
2. Consider Selling Expenses
Next, it’s essential to consider the various expenses and fees associated with selling your house. These may include:
- Real Estate Agent Commission: If you’re working with a real estate agent, you’ll typically pay a commission of around 5% to 6% of the sale price. In this case, a 6% commission on a $300,000 sale would amount to $18,000.
- Closing Costs: Closing costs, including title insurance, transfer taxes, and other fees, typically range from 2% to 5% of the sale price. In this case, closing costs on a $300,000 sale could amount to $6,000 to $15,000.
- Repairs or Renovations: Depending on the condition of your home and any repairs or renovations needed to prepare it for sale, you may incur additional expenses that can impact your proceeds.
3. Calculate Your Net Proceeds
Once you’ve accounted for selling expenses, you can calculate your net proceeds from selling your house. To do this, subtract the total expenses from the sale price:
Net Proceeds = Sale Price − (Commission + Closing Costs + Repairs/Renovations)
Using our example:
Net Proceeds = $300,000 − ($18,000 + $6,000)
Net Proceeds = $300,000 − $24,000
Net Proceeds = $276,000
Conclusion
Selling your house for $300,000 can result in net proceeds of approximately $276,000 after accounting for selling expenses such as real estate agent commissions, closing costs, and repairs or renovations.
While the actual amount you receive may vary depending on your specific circumstances and the terms of the sale, understanding the factors that can affect your proceeds is essential for making informed decisions about selling your home.
At PropertyPal, we’re here to support you every step of the way and help you achieve your goals. Did you know that home sellers can most often keep more home sales proceeds when selling to PropertyPal and not using a realtor? Contact us today to learn more.