Figuring Home Seller's Net Profit

Whenever I take a new listing, I always give the sellers several net sheets reflecting estimated profits from home selling.

After sellers pick a sales price, the next thing they want to know is how much money they will net, after all closing costs are paid. Because buyers expect to negotiate, my sellers get two net sheets, with a high and a low sales price, less all estimated costs of sale. Of course, in today's real estate market, that profit number could be negative. Some sellers have little or no equity and need to bring in cash to close, which is always a bit painful.

On the bright side, though, sellers who have owned their home for more than five years, probably have tons of equity. From 2000 through 2005, the values of homes in Sacramento -- like many parts of the country -- have doubled or tripled in value, which means even a 20% dip in sale prices leaves sellers in a strong equity position . . . read more about home seller profits.

More Articles by Elizabeth Weintraub, click below:

• Home Seller's Worst Mistake
  
• Hiring a Listing Agent
  
• Selling Before Buying

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