Seller Closing Costs & Estimated Net Proceeds

[@MortonMustangVolleyball]

I don’t care if I’m not the one telling my seller this! But you explained it very well! Sending it to her right now! Thank you!

[@McDonaldResidential]

Appreciate it!

[@j.tradeforexinc.2819]

Great video. Thank you. You gave me clear insight on what to expect. What's going to happen vs what i thought was going to happen to two totally different things.

[@McDonaldResidential]

Glad it was helpful!

[@Sarah-tl8vp]

I found your information to be so helpful. You Tube videos are so helpful. I am soon to be divorced and selling my home for the first time on my own. I was very insecure about all of the steps/stages of the selling process for the buyer. You walked through it clearly and I'm ready for the meeting with my realtor this morning to look at the market analysis!

[@McDonaldResidential]

Glad it was helpful!

[@hildilrs]

Awesome video. To the point and more. Thank YOU!

[@McDonaldResidential]

You're welcome!

[@choosetoshine2610]

Excellent content and delivery! New subscriber.

[@McDonaldResidential]

Love it! Thanks

[@choosetoshine2610]

@@McDonaldResidential Very welcome!!

[@BerniceBailey-z9x]

Zach do you have tips on selling home "AS IS" it will be helpful.

[@McDonaldResidential]

thanks for the video idea!

[@FarahPiper]

Thank you very much for your video! 1 question is exice tax the same as capital gain please? Thank you in advance

[@McDonaldResidential]

No, they are two separate taxes

[@tnredbone615]

Nicely explained.

[@McDonaldResidential]

Thanks

[@msdawn5720]

Hi, First timer here,, and I got confused with (6:11) “Costs of getting the house prepared to sell “ and closing costs. I had quite a lot of damage from some good tenants gone bad after covid protection from eviction. Is there another line item charge in closing for this? 😳

[@McDonaldResidential]

Hi Dawn, I'm sorry to hear about the damage caused by your tenants! Closing costs in Washington State don't include the repairs your make unless the invoices are paid at closing from the sale proceeds. If this is the case, the various invoices will be added to the expense category for the seller and the escrow company will facilitate payment.

[@7371301]

Redfin 1.5% to list. 2.5% to the buyer agent.

[@theleefamily5258]

Can the sell proceeds payoff the heloc at closing?

[@McDonaldResidential]

All liens against the house are paid off at closing

[@jayhernandez6812]

If you're buying house in 3 months, is it good to use credit cards or debit cards

[@McDonaldResidential]

Shouldn't make a difference as long as you pay off your credit card every month

[@Indyjumpman22]

I'm just looking for a round about % it would cost in the sale. Say I owe 150k and sell for 290k After mortgage payoff it'll leave roughly 140k. 10-15%?

[@McDonaldResidential]

I tell people to plan on 7-8% of the sales price of the home for expenses.

[@almazabraha]

Thank you very helpful

[@PopsGG]

Its interesting that some of these fees are a % of the sale. The amount of effort shouldn't vary much based on the homes value. Sure homes on the the low and high end of the spectrum will have unique challenges, but those are the outliers. Paying between 7% to 9% of the sale for a few people to print out a few documents and send a couple emails seems unfair.

[@FengShuiSusan]

Very well explained👍🏻

[@McDonaldResidential]

Appreciate it!

[@nammdang6776]

In Denver CO and cities around because water bill tied to property so in the final statement an amount of money about $500 will be hold from seller. A month after closing when it's finalized it will return to seller the remain.

[@McDonaldResidential]

Cool thanks for sharing

[@tyronedavidson4372]

Who is responsible for providing a 1099 after home is sold. I only received a closing statement.

[@McDonaldResidential]

Settlement statement should be good

[@teslamr7333]

I just sold my condo FSBO for 332k which had no loan and no realtor involved. My closing costs were around 7k. All these costs kill me when I think about it. When I buy and sell a stock I pay a few cents in commission!

[@McDonaldResidential]

Good for you!

[@McDonaldResidential]

Hopefully you received multiple offers and sold well above asking price?

[@nammdang6776]

You have to understand the COST and amount debit from you the seller in the Final settlement so you did not feel unhappy. The amount debit take off from the selling price is including the commsion(in your case FSBO no realtor so it is $0) title cost (service charge by title company) 𝓪and the amount you're owned to the seller. I don't know about your situation but in my case selling $668k home they charged me owner title insurance $2,112, closing fee $170, document & notary $350 totaled $2,632. The commision 1% is $6,680.The money I owned the buyer is the prorate property tax, it's is not a cost. The money they debit from me is $13,450 but the COST is only $2,632 + $6,683= $9,315. So in your case the cost is around $2-3 k.

[@DenverChiropractor]

So you paid 2%. With realtors involved it would have added another 6% for a total of 8% ($26500)

[@ranjit3o]

you mentioned 5-6% commission of Seller Agent, Now is this based on the Sales Price or the Equity? Ie:- 300K for the house Standing Loan 200K and 100K Equity will that 5-6% be on 200K(Loan) or on 100K(Paid off Amount)?

[@McDonaldResidential]

Sales commissions are typically based on the sales price. Same with taxes and title/escrow fees. At least that's how it works in WA State.

[@russgilbertson8689]

What is the federal tax on your net proceeds? What is your obligation to pay Uncle Sam on the proceed you get?

[@McDonaldResidential]

Depends on the type of property you are selling and how you approach the sale. There are potential exemptions for a primary residence sale ($250k/$500k) if you meet the requirements and possible deferral on the investment side if you utilize a 1031 exchange.

[@mykebillig3698]

Yo, Mister Information... The loan a home-buyer borrows from a bank (or financial entity) is spelled M.O.R.T.G.A.G.E.

[@McDonaldResidential]

Is there a typo somewhere?

[@mykebillig3698]

@@McDonaldResidential Maybe you didn't write the original headline (which left the letter "T" out of the word mortgage). Don't let me make you crazy; I am a retired journalist (as well as a fill-in/substitute teacher) so I can be a "stickler" about spelling. 🤔

[@McDonaldResidential]

@@mykebillig3698 I appreciate that. Is it still incorrect?

[@mykebillig3698]

@@McDonaldResidential Not to worry...I'm sure you're well on your way to bigger & better (& exceedingly profitable) things!

[@curious_7525]

I need an example of the amount of money that someone made from selling 1 property.

[@McDonaldResidential]

Each situation is unique. In WA State, you should get a good rough number if you take the sales price, subtract 8% for closing costs, and subtract any remaining loan balance.

[@ingenuehairlashesbyngozi7996]

@@McDonaldResidential what about taxes you have to pay on the sale of the home outside the 8%. I think I learned somewhere that singles can right off 250k. Married 500k. I’m just wondering if it is worth purchasing a home for 700-900k, to live in for few years just to sell it? Or do I keep my little property, pay that off to rent it out and buy a little house to live in forever… lol

[@McDonaldResidential]

@@ingenuehairlashesbyngozi7996 www.irs.gov/taxtopics/tc701#:~:text=If%20you%20have%20a%20capital,Home%20provides%20rules%20and%20worksheets.

[@McDonaldResidential]

@@ingenuehairlashesbyngozi7996 You are correct about the possible capital gains exemption. Depending on the housing market, buying, living in a house, and selling it a few years later can be quite profitable. People who bought homes in the Seattle area a few years ago are sitting on a lot of equity, even with the market being a little down at the moment.

[@dfiant5846]

All these fees have me dizzy🤨

[@McDonaldResidential]

There's a lot that goes into it. That's why I made the video. Hopefully it was helpful!

[@michaelpriest]

You get a thumbs up just for being so cute ;)

[@McDonaldResidential]

Thanks

[@larrybondar1395]

You lied

[@McDonaldResidential]

About what?

[@larrybondar1395]

@@McDonaldResidential well in the video you said that the new tax law video will be in the description and I ended up looking for it through your channel lol

[@McDonaldResidential]

@@larrybondar1395 Sorry about that!

[@larrybondar1395]

@@McDonaldResidential so where can I find that video lol

[@McDonaldResidential]

@@larrybondar1395 Should be linked in the video now.