Figuring Out My Equity to Sell My House
In order to know how much money I will keep at closing, I’m doing the math. Figuring out my equity to sell my house is a little bit complicated, and I’m not sure who to ask for help. I don’t want to involve a real estate agent who will want to list my house for sale, and I don’t want to call a lawyer who will charge me by the hour.
It should be a simple math problem, but I know there are costs associated with the sale of real estate. So, simply subtracting what I owe the mortgage company from my asking price won’t reveal my proceeds. The title company and their attorney will need to be paid and the property taxes will need to be paid up to the date of closing. And, if a real estate agent brings me a buyer, I will be required to pay the agent a commission. The costs of selling my house can really add up.
There are both “net equity” and “gross equity” to consider. Net equity is what’s left after all the costs of closing a transaction are subtracted from the gross equity, which is my sale price minus my mortgage payoff. That’s where the overall calculation gets tricky for me.
Why Are There Costs of Selling My House?
Selling a house is not like selling household items. And it’s not like selling a used vehicle. Once the paper title changes hands in the sale of a car or truck the new owner can register it in his name and the vehicle is transferred. But a house involves more steps in the legal process, primarily to determine if the seller has clear title to the property and the proper documents to convey clear title to a new owner.
Title companies search the history of a property to determine if all mortgages, taxes liens have been paid up to date. And they also use lawyers to draft legal documents such as a Warranty Deed.
All this legal work is usually billed to the seller, and that means me. I would rather find a buyer who takes care of the legal expenses for our transaction. Turns out, that’s a real possibility.
We Pay Fast Buyers Pay Legal Expenses
The professional real estate investors and property buyers at We Pay Fast make offers that include all legal expenses for closing the transaction. That sounds good to me. When We Pay Fast makes an offer and the seller accepts their offer, that is the amount of money the seller will receive at closing, minus any mortgage payoff remaining on the property. The seller receives all their equity with no commission or legal fees deducted.