Most people look to comps in their area to come up with the listing price for their property. This is logical, but you also have to focus on the bottom line.

It happens more often than you might imagine. A homeowner decides to sell and goes about figuring the best price to sell. They may set a price off of the cuff or do some research to ascertain the best price that will result in a sale within a specific time period. What many do not take into account, however, is the ultimate amount they will get from the property. This can lead to brutal surprises when the ultimate amount is much less than expected - a concept known as seller's remorse.

In reality, the decision to sell your property should only be made after determining what you can objectively get out of it. Most people, however, tend to eyeball this amount. If you have a lot of equity in the property, it really is not an issue. If you don't, you better start calculating or you could be in for a bad shock.

The first place to start is the estimated price you will sell for minus the outstanding balance on your mortgage. This gives you a rough estimate of your equity, but should not be relied upon as the final cash out figure. Instead, you have to sit down and start calculating the other costs such as:

1. Mortgage pre-payment penalties,

2. Property taxes for the portion of the relevant year in which you are selling. 

3. Any costs associated with repairs to the property to get it in shape to sell.

4. Incidental costs associated with the sale as agreed to in the purchase agreement with the buyer.

Items can include title insurance premiums, recording fees, inspection fees, warranty insurance, escrow fees and so on.

One area people completely forget to factor in is, ironically, the biggest expense. If you use a real estate agent, you are going to pay a significant commission. A typical 6 percent commission on the sale of a $300,000 home is $18,000. More and more sellers are bypassing this by selling their properties without agents, which makes sense given the money involved.  Even though you can save on the fees of having an agent, it will also cause a lot more work for yourself and a headache of dealing with unreasonable buyers. Deciding to sell without a Realtor can add other fees to your cost, paying for marketing exposure to get the word out that your home is for sale.  Also homes sold without Realtors usually sell for 8%-15% less.

So since most people hire a real estate agent, knowing about the fees they take is very important. Most good agents will prepare for you a net sheet to give you an estimate of your bottom line. Regardless, you need to ascertain how you will sell the home and the relevant cost of doing so as part of your overall calculation.

There is a lot of free information available to you about buying, selling, investing, or relocating in the Fremont real estate market. If you are considering buying or selling property, planning to relocate, looking for East Bay Area homes for sale, or looking for any other information about real estate in the East Bay, or the surrounding areas, please visit the most complete website dedicated to everything real estate related www.ClydeBrownHomes.com.

If you or someone you know are in need of a competent and experienced Bay Area Realtor, or have real estate or mortgage related questions, please feel free to contact me I will be more than glad to answer your questions. Call me at 800-839-0665 or email me at Clyde@ClydeBrownHomes.com. For all your East Bay cities needs including Fremont, Newark, Union City, Hayward, Oakland, Santa Clara, Milpitas, Dublin, Livermore, Pleasanton, and San Ramon. Clyde Brown Legacy Real Estate & Associates.

Making the decision to sell is an emotional one. It should, however, also include a hard, cold look at the financials involved and whether doing so makes sense.