Considering selling your home, hunting land, lake cabin or recreational property?  If so, you are probably wondering how much money you will make when you get to the closing table.

1. Determine Property Value.  A property valuation is a great place to start to help determine how much your property is worth in our current market conditions.

2.  Determine Selling Expenses.  After that you will want to determine what expenses you will incur as part of selling your property so you can accuretly determine what your net proceeds will be when you sell your property.  There are a number of factors that go into this, however, it is determined in part by the remainder of your current mortgage and the selling price.

Your realtor will take a close look at market activity, how much money (if any) you still owe on your mortgage, and your taxes to determine the cash value. In other words, this is a more accurate estimate of how much money you will actually make when you sell your property.

Another factor that proprety owners typically don’t consider when calculating their profit is closing costs. Closing costs are all of the fees and expenses that come with selling your home. These costs can include the following:

Commission: A fee you pay to your Realtor for their services
Transfer taxes: The tax that is paid when the title of a property is transferred to someone else.  Minnesota has a 0.33% State Deed Tax.
Loan payoff costs: The amount you have to pay to satisfy your current mortgage loan
Title insurance fees: This is the cost of the homeowner’s policy which is protected until your loan is paid off or refinanced
Attorney fees: These are the fees paid to your attorney during the sale or purchase of a home which often protects you and helps you make decisions and resolve issues during the transaction
Septic System Replacement:  Many Counties in Minnesota require a point of sale inspection on septic systems.  If the septic system fails the inspection and needs to be replaced, often the seller will agree to escorw for all or part of the replacement system.

Another factor is any upgrades you may do to your proeprty that may increase the value but is also an added expense.  Our real etate agents can offer guidance to this as what may be the best improvements to do to your property to get you the maximum profit.  Some of them maybe realatively unexpensive such as cleanup work, decluttering and fresh paint.

As you can see, there are a lot of different factors that go into the profit of a home sale, so while knowing the estimated value of your property is important, your bottom line includes a lot of variables. If you’re like us, before making a big financial decision, you want to understand all of the numbers specific to your situation. We know selling your home comes with a lot of questions and we’re here to help.