Unlocking the Mystery: What Do You REALLY Walk Away With When Selling a House?
Unlocking the Mystery: What You'll Really Walk Away With When Selling Your Home
You've decided to sell your house, and naturally, one of the most pressing questions on your mind is, "How much money will I walk away with?" The answer isn't as straightforward as you might think. In our latest video, Jenny and Cryssi dive deep into this complex topic to give you a comprehensive understanding of what you can expect.
The Four Components
First off, let's break down the four components of your mortgage payment: principal, interest, taxes, and insurance. These are the basics that every homeowner should understand, as they make up the lion's share of your monthly obligations.
Interest in Arrears
One aspect many sellers overlook is the concept of paying interest in arrears. For example, if you close on your home in October, your first mortgage payment won't be due until December. However, this doesn't mean you've skipped a payment—it will show up later, and you need to account for this when calculating your proceeds.
Real Estate Fees & Liens
Then there are the real estate fees, which are usually a percentage of the sale price. These cover the services provided by your real estate agents and are deducted from your proceeds. Additional deductions might come from various types of liens on the property, like solar panel contracts, HVAC liens, or any other kind of encumbrance.
Homeowner Association (HOA) dues are another expense that can eat into your proceeds. If you owe any unpaid dues, these will also be deducted from what you'll walk away with.
The Bottom Line
All of these factors combine to paint a realistic picture of your financial outcome when selling your home. Knowledge is power, and understanding these components will empower you to make informed decisions throughout your real estate journey.
So before you put that 'For Sale' sign up, take a few minutes to watch our video. It's a small investment of time that could save you a lot of surprises down the line.