The decision to sell your home is never an easy one. The difficulty lies in not knowing what to expect. Prospective sellers often don’t even know how much they can get from a sale. That’s where home sale calculators come in. They attempt to simplify the process by giving you a convenient way to estimate how much you’ll profit from the sale of your home.
We’ll look into home sale calculators and how they work. You’ll also discover that they have huge limitations and that there’s a better way to get an accurate profit expectation from your house sale.
What Are Home Sale Calculators?
A home sale calculator or house selling calculator is a tool you can use when you’re in the market of selling your home. In a nutshell, it calculates the estimated net profit you can expect from the sale. It’s a useful “exploration” tool to have in the beginning, especially if you don’t have easy access to a real estate professional.
Home sale calculators are typically used by homeowners to get an estimate to see if selling their house is worth it or not. Manually computing your profit can be daunting, especially if once you see how many things factors go into it
Home sale calculators are convenient because they’re easy to access. There are a lot of calculators you can easily use online. They vary from the simple ones, which only requires a few variables, to complicated tools that try to account for every cost imaginable.
However, you should be aware of the limitations of home sale proceeds calculators. For one, they can only give a rough estimate of your profit at best, and wrong information at worst. That’s because these calculators rely on assumptions, and their accuracy is based on the strength of these assumptions.
It’s still best to approach an established real estate expert to get a much more accurate representation of the real value of your house. There are lots of nuances that only a professional who has experience and market knowledge can adequately deal with.
You should also know that no home selling calculator can predict 100% how much you’ll get for your home’s sale. There are lots of things that go into the selling process that can impact your net profit. These are often seemingly small costs, like taxes and fees, that can add up to become significant.
The most significant factor, of course, is your house’s selling price. You can set any amount you want, but at the end of the day, the price that will prevail is the one that the buyer is willing to pay for. No house calculator can predict that with absolute certainty.
How Home Sale Calculators Work
Home sale calculators are simple enough for anyone to use. They consist of different fields that represent some aspect of selling your home. These include variables such as the estimated value of your house, where it’s located, how much your mortgage is, and other estimated costs.
After filling all the relevant information, you then click a calculate button, and the results are computed automatically. Sometimes, the form is even interactive, where the result changes as you enter or edit the numbers in the fields.
The calculator will then display the net proceeds from the sale, which is the estimated profit you’ll get after all costs are factored in. You’ll often see your home’s sale price and the total costs to give you an illustration as to how the net profit was calculated.
Most house sale calculators are very user friendly so that even those with no real estate experience can use them. They often (the better ones, at least) include helpful descriptions and also recommendations for each field. For example, if you plan to hire a realtor and have no idea how much they charge, home calculators can fill you in on how much to expect (which is around 5% – 6% of the total sale price, on average).
If you’re a visual person, you can also use home calculators that display the results as graphs or charts. This is great for seeing at a glance how much of your selling costs are eating into your profit, so maybe you can find ways to help reduce that.
What Factors Do House Sale Calculator Look At?
If you look at a calculator for the cost of selling a house, you’ll see that they take a lot of things into account. This is to make the results as accurate as possible.
One of the main factors is your house’s sale price. Of course, this isn’t as easy to figure out as one might think. A good rule of thumb is to look at how much other similar houses in your area are selling for and to go with that. You can also check previous market data to get a reasonable estimate.
If your house has a mortgage balance on it, the amount will be taken into account as well. Calculators will ask for the interest rate on your mortgage, plus the remaining money you owe, to arrive at the total cost of your mortgage loan. This is subtracted from your profit.
Another big thing to consider is the commission of your realtor if you choose to hire one. The percentage amount for real estate commissions are around 5% – 6% of the sale price. Even if you don’t plan on getting one yourself, the buyer might. As the seller, you’ll most likely be obliged to cover the buyer’s realtor commissions.
Selling a house also involves fees and taxes, and a useful calculator will include them. Common ones include transfer taxes, escrow fees, and other payables to the federal or local government. In some calculators, these are usually lumped into one field, referred to as closing costs.
Lastly, you have other marketing and ownership costs. These are often expenses associated with selling or marketing your home to make it attractive to buyers. These include repairs, staging, putting up a listing, printing brochures, and utilities. Most house sellers underestimate how much these costs can bring profit down, so even the best calculators may not take them into account.
What Does A Home Sale Calculator Miss in the Selling Process?
While they have their place, home sale calculators are far from accurate. As mentioned above, they can only give you a very wide estimate of the actual profit you can expect to get from your house.
The reason is simple – there are a lot of variables in figuring out the proceeds from a home sale that only a real estate professional can accurately calculate. Take the selling price of your home, for example. Knowing the correct market value of your house takes plenty of knowledge and experience. If you do it on your own and make a rough guess, then you’ll probably be way off. Seeing as a lot of the results of calculators depends on your house’s sale price, this can lead to very inaccurate estimates.
There are also many nuances that a home sale calculator will fail to take into account. Going back to the example of the selling price of your home, this can change drastically throughout a transaction. Buyers will try to haggle the price, of course, so you’ll probably get a lower profit than what the calculator says. The calculator won’t also tell you if you’re in a buyer’s or seller’s market, which can influence how high or low you can haggle.
Miscellaneous costs can also change. Marketing costs and utilities, for example, will tend to go up the longer your house is sitting on the market. The mortgage will also have hidden fees if you pay early, which is difficult to predict.
Use 365 Property Buyers Instead
In the end, relying solely on a home sale calculator to make selling decisions is not an acceptable decision. You’ll end up being misinformed and setting the wrong expectations on how much you’ll actually get.
Instead, go with a professional third-party cash buyer, such as 365 Property Buyers. We buy houses for cash and offer a better alternative to traditional home selling avenues like realtors or selling your property yourself.
The most significant advantage of working with us is that we’ll give you a fair cash offer in as little as 10 minutes. No need to mess around with house calculators as you’ll get a 100% accurate expectation of how much profit you’ll be making.
365 Property Buyers dramatically simplifies the process of selling a house for cash. You can go from planning to getting your hands on your proceeds in as little as a few days.
You don’t need to worry about the tedious steps of preparing your house for sale, such as staging or repairs. Best of all, you get to avoid hiring a realtor, which can take a chunk off your earnings. By eliminating these unnecessary costs, you can maximize the profit from your sale.
If you’re still unsure about selling your house, we give you a free, no-obligation cash offer. You can even call us today or fill out our online form to get your fair cash offer in less than 10 minutes. There’s no need to mess around with calculators, which can only mislead you. Get the most accurate expectations and sell your house fast with 365 Property Buyers (501)369-0365
Cities in Arkansas where We Buy House
|Alexander – We Buy Houses Alexander|
|Austin – We Buy Houses Austin|
|Beebe – We Buy Houses Beebe|
|Bella Vista – We Buy Houses Bella Vista|
|Benton – We Buy Houses Benton|
|Bryant – We Buy Houses Bryant|
|Cabot – We Buy Houses Cabot|
|Conway – We Buy Houses Conway|
|Fayetteville – We Buy Houses Fayetteville|
|Fort Smtih – We Buy Houses Fort Smith|
|Hot Springs – We Buy Houses Hot Springs|
|Jacksonville – We Buy Houses Jacksonville|
|Jonesboro – We Buy Houses Jonesboro|
|Little Rock – We Buy Houses Little Rock|
|Maumelle – We Buy Houses Maumelle|
|North Little Rock – We Buy Houses North Little Rock|
|Paragould – We Buy Houses Paragould|
|Pine Bluff – We Buy Houses Pine Bluff|
|Rogers – We Buy Houses Rogers|
|Russellville – We Buy Houses Russellville|
|Searcy – We Buy Houses Searcy|
|Sherwood – We Buy Houses Sherwood|
|Springdale – We Buy Houses Springdale|
|Texarkana – We Buy Houses Texarkana|
|Van Buren – We Buy Houses Van Buren|
|West Memphis – We Buy Houses West Memphis|