Accurately Calculate Your Net Sale Proceeds
Guessing Can be a Costly Mistake
The Importance of Accuracy
Obviously the sale of your home is a life change that should not be taken lightly. But all too often sellers have not fully prepared for what comes next. Knowing with accuracy what the net proceeds from the sale will be goes a long way in making the transition safe and predictable. Wouldn't it be comforting to know how much to expect there to be in your bank account once your transaction completes?
Putting the Guesswork Aside
When filled in correctly this worksheet can predict your after-sale financial position with great accuracy. However, much depends on how well you predict the actual sale price. To do so we strongly suggest rather than opting for the widely used method called CMA (Comparative Market Analysis) using the more dependable and accurate BPO (Broker Price Opinion) instead. This method will help account for comparable property value adjustments like age, condition, upgrades/updates and added/missing property features.
What Information Is Needed
1) Square footage of home
2) Neighborhood comparable sales (comps)
3) Knowledge of comp pros & cons (comparative to subject property)
4) Changes to subject before listing
5) Estimated closing costs
6) Mortgage debt
Alternative Methods (not recommended)
1) A traditional means to estimate the 'bottom line' is easier and faster to complete. If accuracy is not at issue it can be done without the assistance of a professional or by asking an agent who prefers to use the CMA approach. By simply evaluating the comps by what is read in the sales description (as you would see on Zillow.com), adjusting for any size differences and subtracting financial liabilities one may come to a reasonable estimate.
2) An appraisal in combination with simply obtaining estimated closing costs from an escrow company and the mortgage payoff amount will do the trick with accuracy. The drawback to this solution is the cost of an appraisal. Locally the average homeowner might expect to pay $450 to $550.
I Prefer a Little Help
I need accuracy to plan my future. Please complete a worksheet for me.
Download the Worksheet
It looks like a great worksheet and I think I'm prepared to go it alone.