SELLER’S NET VERSES EQUITY
Seller’s objective is to make a financial gin or proceeds from the sale of their property. This proceeds is what we call Equity. This Equity when surpassed by the debts or liens on the property will result to a negative Equity.
To better understand the seller’s net, lets discuss and understand Equity and the expenses related to the sale of a property.
EQUITY: The appreciation of your property in value due to: Home improvement, appresaised value, market value and location. The difference between the market value and the mortgage balance, second mortgage (if applicable) home equity and other liens is what is known as Equity.
If we understand Equity accrual and related expenses, then lets examine a hypothetical theory:
Home price-------------------------------$ 350,000.00
1st Mortgage-----------------------------$ 200,000.00
2nd Mortgage----------------------------$ 50,000.00
Equity---------------------------------------$ 100,000.00
To get to the Seller’s Net, we must deduct all related expenses not limited to mortgages.
These expenses do differ from property to property. Please check with related documents for accurate figuring. If you are thinking of selling then let Globe Pro Realtors assist you in achieving your financial goal.
JUST REMEMBER THAT WE WILL COME TO YOU IF YOU ARE TOO BUSY TO COME TO US.
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