Most often, people turn to comps that are in that area to tell them the listing price of their property. While this is not the wrong thing to do, you have to put your focus on one thing; how much are you going to make by selling your property.
This happens quite often. Some homeowner somewhere decides that he wants to sell his house. Then he attempts to come upon the best price for selling his house. He might simply set some price simply based on intuition or he might do some research for determining the best saleable price that he can get by selling within some period.
However, not many sellers take into account the real price that they will get in their hands. In other words, they do consider the final amount that will reach them after they sell the property. As a result, they might get a rude shock to see that it is less than what they had expected.
In fact, you should decide to sell off your property only after you have determined very objectively what you will earn from it. When you say this, most people will try to avoid this question. Now, if you own quite some equity in your property then this issue should not bother you much. However, if that is not the case then you should better do the calculations right or you might be in for some rude shock.
First, you should subtract your outstanding mortgage balance from the estimated selling price. This will give you an idea about the size of your equity. However, you should not rely on it as a final figure. There are other costs that you might want to consider first before you can calculate the estimated final figure.
You should include other costs such as the penalties for mortgage pre-payment, the property taxes for that year when you are making the sale, any repairing expenses, the lawyer’s fees and finally, any incidental costs that are associated with your property sale. This can include anything from title insurance premiums, inspection fees, recording fees and warranty insurance to escrow fees.
Then another big expense that you might have to incur is the commission that you will pay the real estate agent if you have hired one. Usually, they charge up to 6% commission on any property sale. Therefore, you should be prepared to part with that money too.
With the amount of money involved, most people are now diverting to doing it all by themselves without any help from such agents. The reason is obviously the cost.
Thus, you should consider all of these things before concluding the amount that you will get by selling your house. In fact, you might even put off selling your house after doing all the calculations.