How to calculate the amount of money you’ll keep after your home sale.

How much do you actually keep in your pocket after selling your home? Calculating your net proceeds is more than just subtracting your mortgage balance from your value or sales price. There’s a formula to it, and today I’ll share three steps you have to take so you know exactly what you could net from the sale of your home:

1. Go to our website at HoltzGroup.com, and use our easy and quick home valuation tool. While you may not get an exact number for today’s market buyers, it does give you a rough estimate of what you can expect. 

1. Subtract your principal balance. Your principal balance can be found on your mortgage statement. If you have two mortgages or a home equity line of credit, you have to do this for each mortgage. Make sure you know how much of your payment goes towards the interest. You’ll need to add a month of interest into each of your monthly payments for each mortgage. That will give you a more accurate idea of what your payoff balance is versus your principal balance.

2. Estimate your closing costs. There are fees associated with selling as well as taxes. There’s the state tax, recording fees, closing or title company costs, and broker commissions.

1. Work with a professional agent. If you want to maximize your net proceeds, this is one of the best things that you can do. At the Holtz Group, our track record is selling our homes 3% higher than the market average right now. So if the average sales price in our area is around $400,000, that means we’re netting our sellers $12,000 more in their pocket than the average agent out there.

If your goal is to net the most amount of money in your home sale or if you have any real estate questions, reach out to us. Give us a call or send an email. We’d be happy to connect with you!

Written by Shelly Holz on January 3, 2023.