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Estimate of Net to Seller
Information for Sellers
When you receive an offer, you can accept it exactly as it is, refuse it, or make a counteroffer to the buyers with the changes you want. In evaluating a purchase offer, you should estimate the amount of cash you'll have when the transaction is complete. For example, when you're presented with two offers at once, you may discover you're better off accepting the one with the lower sale price if the other asks you to pay some of the closing fees or needs a later closing date. Once you have a specific proposal before you, calculating net proceeds becomes simple. From the proposed purchase price you can subtract:
- Payoff amount on present mortgage (check ahead of time; you may have a pre-payment penalty with your current mortgage company)
- Any other liens (equity loan, judgments);
- Broker's commission;
- Legal costs of selling (attorney, escrow agent);
- Unpaid property taxes and all utilities;
- If required by the contract: cost of survey, termite inspection, buyer's closing costs, repairs, etc.
Your present mortgage lender may maintain an escrow account into which you deposit money to be used for property tax bills and homeowner's insurance premiums. In that case, remember that you will receive a refund of money left in that account, which will add to your proceeds.
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