s e l l i n g  p r o p e r t y

Determining Your Net Proceeds

In evaluating purchase offers, you need to know what the buyer's position is as regards chains and mortgage or cash purchase. If you’re lucky enough to get two competing offers, you may find that sometimes the highest offering price may not be the best offer if one buyer is in a chain and the other is not and proceed immediately (there may be less chance of any glitches etc). Equally if the highest offer buyer has to to through all the steps to get a mortgage and the other buyer is a cash buyer the cash buyer may be a simpler choice and more certain choice if you are in a buying chain and so under pressure for time yourself.

To calculate your net proceeds from any given offer, you subtract the following amounts:

• Payoff amount on present mortgage;
• Any other liens (equity loan, county court judgments);
• Mortgage arranger's commission;
• Legal costs of selling (solicitor);
• Transfer taxes;
• Agent's selling commission
• Unpaid property taxes and water bills;
• If required by the contract: cost of survey, buyer's completion costs, repairs, etc.
• If you have an account for property tax bills and homeowners insurance premiums with your mortgage lender, you may be entitled to a refund upon the sale of your home, which you should add to your net proceeds.

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