A friend of mine sold his house recently, and said he paid over $100,000 in costs. If I sell my house in Los Feliz, how much of the sales price do I actually keep? Is there a formula to calculate that?
When you sell your house, there are a few things you’re guaranteed to pay. Escrow fees, title insurance, transfer taxes, and of course agent commissions. In total, this usually comes out to 7 or 8% of the sales price. So, if you want a ballpark, calculate 92% of your sales price minus any loans you have on the house.
However, and this is a big however… In most real estate sales, Buyers ask for repairs, and depending on the house, these can really add up. I’ll bet you anything; your friend paid his buyer a small fortune for repairs.
It’s funny, most Sellers try to save their money by finding these discount agents who will work for peanuts… What they SHOULD do is hire agents who know how to do the important stuff: like get a higher price and pay less to the Buyer for repairs. It’s like stepping over a hundred dollar bill to pinch pennies.