Home Selling in Murfreesboro>Question Details

Daniel Hagood, Both Buyer and Seller in 37167

How do I determine the lowest price we can go on our house and still clear enough for a down payment on a new one?

Asked by Daniel Hagood, 37167 Mon Mar 26, 2012

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Call a local realtor (i can refer you to the best, most active realtors in town whom i trust if needed) and ask them. OR -- call a real estate attorney and ask them for a preliminary settlement statement. They will be able to walk you through the process if you are doing a for sale by owner. Blessings,
Marshall Sparkman
Loan Officer - First Community Mortgage
http://www.sparkmanteam.com
marshall@sparkmanteam.com
615.439.0885
0 votes Thank Flag Link Tue Mar 27, 2012
Dan, Talk to your lender. Only they can give you the specifics. DAVE
0 votes Thank Flag Link Tue Mar 27, 2012
Hi Daniel,

Great question. What we will do is take a look at what you owe on the house and then take a look at comparable houses that have sold. With the systems I have I regularly sell houses in less than 90 days, and I always get the seller what they can work with when we take in a contract on your house. I will sit down with you to show you what I believe we can get for your house, and then when it comes time when we get the offer, I will show you just what you should receive at closing.

Please give me a call at 615-948-4098 with your questions and I will be happy to help you. You can also see how we market our homes and get more information on us by going to http://www.callgeorgeweeks.com We hope to hear from you soon!

George Weeks, Leader - Team George Weeks
RE/MAX Choice Properties
Direct 615-948-4098
Fax 615-907-8755
Honesty - Integrity - Great Service
http://www.callgeorgeweeks.com
0 votes Thank Flag Link Mon Mar 26, 2012
Hi Daniel. Here are the questions that you will need answers to:

1. Determine how much money you need for your new house. Be sure to include Down Payment and Closing Costs.

2. Determine the value of your current house. If you have an offer then use that price. If not, then figure out the value of your current house really worth (i.e. based on actual sale comps)?

3. If you have an offer then subtract your actual sale costs. If not, subtract about 9% from the answer to #1 to cover real estate commissions, sale costs and some buyer closing cost assistance (it is very common for sellers to pay for some buyer closing costs).

4. The difference between #2 and #3 is your approximate Net Sale Proceeds.

5. Subtract your mortgage payoff (your principal balance plus accrued interest- get from your mortgage lender) from your Net Sale Proceeds. This is your Walk Away Money from the sale of your current house.

6. Subtract the amount you determined in #1 from your Walk Away Money. If you have money left over then you can drop your sale price of your current house by approximately that amount. If you are short of the needed amount for your new house then you will need to add that amount back to the sale price of the current house and recalculate until you have exactly nothing left over from the Walk Away Money.
0 votes Thank Flag Link Mon Mar 26, 2012
Murfreesboro, as in TN? My home town! I would check with a local realtor and have them give you an estimate of settlement costs...they should be able to identify cost of commissions, title insurance, taxes imposed from the sale as well as prorated property tax to provide you with an estimate of 'net proceeds'.....then you will see what is available for a downpayment for the new home. Just remember, in selling, it is not what you 'need' or 'want' as the net proceeds, rather what the market value of your property is..that will determine the actual sales price.

Hope this helps!
0 votes Thank Flag Link Mon Mar 26, 2012
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