How To Make Sure You Break Even When Selling Your House
If you want to sell your home quickly and are not concerned with making money on it, you may want to price it right so that you can sell it quickly and just break even on the deal. If this is the situation you are in, here are some tips to help you know how much you should sell the house for so that you can break even on it.
Find out how much you owe
Breaking even when selling a house will require knowing exactly how much you owe on the house. You can find this out by contacting your mortgage lender or by going online and looking up your balance. The balance you owe will be the first amount you must pay when you sell your house. Keep in mind that there might be additional interest to pay on the loan when you sell your house because interest accrues daily.
Add in the expenses you will have from selling it
The second thing you will need to do is figure out how much the expenses will be when you sell your house. The main expense you will most likely have to pay out of your pocket is the commission to the agent that helps you sell the house. To calculate this amount, you will need to know the commission rate, which is probably around 6%, and the approximate price you will sell the house for. You should also ask a real estate agent if there are any additional expenses you will have to pay.
Once you know these details, you can add your expenses to the amount you will owe your lender for the mortgage balance, and this will reveal the break-even point. This is the amount you must sell the house for in order to break exactly even on the deal.
Price the home based on this information
Once you have these details, you will be able to determine how much to ask for your house so that you can break even. It's important to increase the price a little bit from your break even point, simply so that there is room for negotiations. You can ask your agent to help you determine the best asking price for your home.
Breaking even when selling a home is usually fairly easy to do, unless you do not have any equity in the house. If you have questions about this, talk to a realtor in your neighborhood.
