How Much Will I Net? Part One

Once we get past the question of 'what is my vacant lot worth', (which is a post for another time), almost without fail, the next question is 'how much are the closing costs'. I actually prefer to talk bottom line, right from the start, but it almost never works out that way due to how the questions are asked. The bottom line should be the starting point, and then we can get to a breakdown of sales price and estimated costs.

For the purposes of this discussion, we'll use a sales price of $35,900, with a closing happening in early May of 2007.

Check out this seller's net proceeds sheet for a guide as we go. (Click for Larger Image)



The very first thing I have to point out is at the bottom:

The above information has been obtained from sources deemed to be reliable. However, the data is for the information of parties only and is not warranted by this company as to accuracy or completeness. Seller acknowledges that all data are estimated and subject to change.

It is very important to realize that these are estimates and that the final figures can not be given until closing.

Section 1) You have your sales price listed, then you subtract any mortgages, loans or other encumbrances. The mortgage payoff can only be estimated, too. The mortgage company will have to give the payoff amount and it will be based on the date of closing. If that date changes, a new payoff has to be ordered.

Are their any leins on the property? Sometimes you might not realize it, and the title search will find it. Any leins must be paid off, of course.

Next time I'll go over the next section, including in part, doc stamps and property taxes.

Hopefully I can take some of the mystery out of selling your vacant lot. If you can't wait for the next post, and need to know the answers about your vacant lot in Ocala, call me today.