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9 Steps in Selling Your Home: Steps 5-6

November 8, 2005 on 4:54 am | In Uncategorized |

Step 5: Determine the Cost to Acquire a New Home
Total your costs to acquire a new home may include but not limited to: down payment, loan costs, moving expenses, home inspections, title work and new hazard insurance policy premium. When you applied for pre-approval your lender should have given you a disclosure of estimated costs.

Step 6: Calculate Your Estimated Earnings
This is basically estimating the money you will have left over after you sell you home.
First, deduct the mortgage payoff from the fair market value of your home. Then, deduct the cost to sell from the remaining balance and this will give you your total proceeds made from selling you home.

For example, my mortgage payoff is $70,000, fair market value is $100,000, and the cost of selling my house (includes agents commission, repairs, advertising, ect…) is $7500.

This is how you would work it: 100,000 - 70,000 = 30, 000 then 30,000 - 7500 = 22,500. So the total proceeds that will be made off this example would be $22,500.