BasicsYour profits from the sale of your property will be based on:
- sale price
- current first mortgage principal
- current second mortgage principal
- loan prepayment penalty
- tax and other liens
- closing cost credit
- selling commissions
The sales price of the property is the final price you get for the property. This may be different than your guess of the appraisal value. You may end up getting more or less than you expected for the property.
You should know what the payoff amounts are for your current mortgages. This is an official statement you can get from your lender showing you exactly how much it will cost to pay off their loans. This will also include any loan prepayment penalty, if there is one.
Your property may also have tax liens or other liens on it. These will have to be paid off when the property is sold.
You may end up helping to cover the closing costs of the buyer.
Your last expense is the sales commission paid to realtors.
You can use a real estate seller profit calculator to figure out how much you will get in the end.
You should be able to look at different scenarios, such as a change in your sales price or the commission rate paid to realtors.
There are many free mortgage calculators available online to help you figure this out.
