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How Much Can I Make From the Sale of My Home?

How Much Can I Make From the Sale of My Home?


How Much Can I Make From the Sale of My Home?

When a homeowner thinks about selling their house, they want to know how much money they could make. Although it’s one of the most common questions, there’s no easy answer. The money a home clears when it sells depends on several factors. Let’s look at the biggest things that impact how much a seller can make on their home.

The Home’s Selling Price

The more a property sells for, the more money the seller stands to make. If the house goes up for sale during a hot seller’s market, it will probably bring a top-dollar price. If a bidding war ensues, and many have over the past few years, your house may even sell for more than you’re asking for it.

However, if a seller puts it on the market during a housing slump, or when interest rates have recently increased, there may not be as much interest in the property. This situation could cause the offers to come in lower.

The Home’s Condition

Many of today’s homebuyers aren’t “handy” or they don’t have the time to devote to large, sweeping renovations. A move-in-ready house is typically more attractive to a larger number of buyers, which helps it bring a higher price.

If your home is outdated or needs significant repairs, you probably won’t be able to sell it for a premium price.

How Much You Still Owe on the Mortgage

Another key piece of information that influences how much you can make on selling your home is how much you still owe on it. The less you owe, the better. If you paid a large down payment and have been in your home at least five years, you’ve probably paid down a significant chunk of your mortgage loan. When you sell, the price you get for it will most likely be quite a bit more than your loan balance.

On the other hand, if you didn’t pay much down and have only lived in the house two or three years, you most likely have a mortgage loan that is close to the amount you can sell the home for. In this case, you’ll make little, if any, off the sale.

Who Handles the Closing Costs

Closing costs can be a hefty part of selling a home. If you agree to pay them, this cuts into how much you make on selling your home. If the buyer pays them, then the closing costs won’t affect how much you make.

Real Estate Agent Commissions

A real estate agent typically gets paid a percentage of the selling price. If what you’re selling the house for isn’t much more than what you owe on it, the agent commissions can cut into how much you make off the sale.

Talk to MIG about your next mortgage loan or refinance. We can lay out your options and help you make the best decision.

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Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at migonline.com Legal Information.

MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:

  • Rates are subject to change at any time.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Payments will vary based on program selection, current rates, property location, etc.
  • Not all programs are available in all states.
  • Some loan programs may not be available to first time home buyers.
  • Terms and conditions apply, which may include restrictions or limits per loan program.
  • Information is generally based on primary residence occupancy with no cash out when refinancing.
  • Unless otherwise stated, terms shown are estimates based in part on credit score of 700 or higher; owner occupancy, escrow account is established for taxes and insurance(s); debt-to-income ratio no higher than 43.0%; PMI applies to conventional loan programs over 80.0% LTV; VA,FHA & RD require insuring fees included in loan and/or payment; fixed rate, 30 year term.

An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020