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I am in Raytown, MO and wanting to place my house on the market and I have equity in my home. The home in my area is running between 120,000 and 129,000. I need to get out of the house real soo n my husband has enlisted with the Navy. Not sure how selling works with the equity in the home.
I am in Raytown, MO and wanting to place my house on the market and I have equity in my home. The home in my area is running between 120,000 and 129,000. I need to get out of the house real soo n my husband has enlisted with the Navy. Not sure how selling works with the equity in the home.
How does it work we selling a home with equity? You pay all fees associated with the sale and whatever is leftover you pocket.
You subtract any mortgage amount outstanding against the property plus any real estate agent and closing costs from the sale price.
Example:
A buyer offers you $190,000 for your house.
You have a mortgage of $100,000 so $100,000 of that sale price is used to repay the mortgage loan.
That leaves a profit of $90,000
You hired an agent to help you sell your house and their fee is 6% of the sale proceeds. 6% of $190,000 is $11,400.
So you deduct another $11,400 from your profit.
That leaves you with $78,600.
You may have some other expenses associated with the sale, let's assume those total $5,000
You deduct another $5,000 from your profit.
The final amount of cash in your pocket (your equity) is $73,600.
BUT:
If the house will not sell for more than you owe on it (including realtor fees and closing costs) then you have negative equity, and will therefore make no profit.
And keep in mind that "needing to get xx out of my sale" has nothing to do with the amount you should list for. Buyers don't care that you need to get $130,000 in order to pay off your loan and have enough for a down payment at the new house. Buyers only care that the house is worth $110,000 in today's market.
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