In this Hauseit tutorial we will show you how to use the New York City home sale net proceeds calculator.
The purpose of the calculator is to determine as a seller how much your closing cost will be and
furthermore what your net proceeds would be on a sale. Now, in order to use the calculator
assuming you have a mortgage. We do need to know the amount of your loan payoff.
You can find this information on your most recent
mortgage statement or you can log in to online banking and it should be there or you can give your lender a call.
Assuming you have that information, the next step is to navigate to the calculator site
which is visible here on the top left. It is hauseit.com forward slash NYC
home sale net proceeds calculator.
Now once you're on the page, if you go to the left hand side,
you will see a number of inputs which you can fill out depending on your scenario.
So in the example of say selling a two million dollar co-op, you would input the sales price of
2 million dollars.
He would select the housing type as co-op and
in the event you have a mortgage you can toggle it on here and type in the loan payoff amount.
So let's just say hypothetically you owe eight hundred and fifty thousand dollars.
You would put that here as the loan payoff amount and then for New York City broker commission,
hopefully you're paying less than six percent. If you're using the Hauseit Agent Assisted FSBO
Platform and you find a direct buyer,
you may very well be paying zero percent but we can come back to that in a little bit.
Now if you've selected co-op there will be an automatic flip tax that is turned on and it is currently
set to one and a half percent which is a fairly typical
considerate an average number for a co-op flip tax here in the city. Of course
you can customize it so to come up with the most accurate figure we would suggest that you
contact your managing agent or check in your house rules,
bylaws or purchase application to figure out the exact amount of your flip tax.
So we filled in all of the preliminary
fields at this point and so if you look on the right-hand side it is going to tell us
essentially how we stand when it comes to our net sale proceeds.
So the total seller closing costs are a whopping a hundred and ninety three thousand dollars
Nine point six percent now the majority of these come in the form of the broker commission.
So as it goes without saying it's very important to figure out a way to
minimize if not fully eliminate the commission amount.
If you are selling through the agent assisted FSBO platform,
the buyer comes without a broker, the broker commission would be zero and you can see how this takes your
seller closing costs down from approximately two hundred thousand dollars to seventy two thousand dollars.
So that's certainly more than the median income for a New Yorker.
It's a huge amount of money that you can save by being a bit creative on the broker commission side of the equation.
Now in this example, we'd have our closing costs of seventy three thousand. You have your loan payoff amount
so your net sale proceeds is another way of thinking about how much you would essentially have left
after you've left the closing table.
So on a sale of two million you are going to come out with a little bit under
1.1 million dollars.
Now, let's go back to the broker Commission
and if we put back that six percent
you can see that your proceeds have gone down from nearly 1.1 million dollars to well below a million dollars
around nine hundred and fifty thousand. So again, it's a very important component of
seller closing costs the bulk of them are actually
comprised of just the commission figure the other large seller closing costs are
primarily going to be the
transfer taxes in New York City. These are the two entries right here.
You have New York City and New York State.
They both take a cut if you're on the calculator page and you want to learn more about any of these items
click on the link here. It'll open up a page which will give you a full breakdown of those specific closing costs and
again for flip tax this is building dependent.
So you really should do research figure out what your buildings flip tax will be and you can update it here
in the calculator. So in this case if we select it and
put 10,000,
you'll see a fairly considerable reduction in your seller closing cost which will carry through to a higher
net sale proceeds. If you do want to share this result, you can email the results
so if you click email type in your email and hit send it will send you this output and
you can also print a PDF. So if you click on this button, it will open a PDF that you can save down and
possibly
email to
family member or to a friend. So this is an example of the PDF output
but going back to the calculator,
once you've created a scenario, you can just continue to make edits to it.
So even if you've already sent yourself an email
you can for example update the sale price change the payoff amount change the commission. Let's say you're with the
Hauseit Agent Assisted FSBO and you find a buyer with a buyer agent,
you wouldn't have any listing agent percentage commission
but maybe you would have a buyer agent commission say of two and a half percent or whatever you offer. In
that case as you can see here, it will improve your net sale proceeds
pf course versus a typical six percent commission so you can learn a bit more about those
reduced commission options by going to the Hauseit site.
Click on the sell drop down and look out for Agent Assisted FSBO.
This is the one that will give you the highest amount of savings. You do have some work to contribute. However under this particular
sale
methodology the other option is the full service for 1% so feel free to click on those to take a look and if you are
thinking of buying
after selling you certainly don't want to forget about
the buyer closing credit program under which you can save up to 2% on your purchase here in New York City.
So you can click on the buyer closing credit link to learn more and
if you are interested in buying you may also want to look at the buyer closing cost calculator which is right here.
We also have one for new developments which is a little bit different because with a new development you do have to pay
some of the closing costs which are typically assigned to the seller or in this case
they're called sponsor closing costs and the buyer usually pays them.
So the new development calculator has a greater emphasis on those
closing costs that are additional for new developments and keep in mind you can negotiate
those closing costs so if you are buying a new development
you go in the calculator. Let's just put an example of 1.5
million dollars. You'll see here the new construction related closing costs.
If we want to fill and be a little more accurate, we can put in some additional
closing costs which your typical and so these are the things you can typically
negotiate.
So if you have any questions leave us a comment right below the video and
feel free to check out all of our other closing cost calculators.
We have buyer closing cost calculator, New York City mansion tax calculator,
mortgage recording tax even a cap rate calculator, if you're buying an investment property rental property calculator,
purchase SEMA if you are looking to buy or sell and there's an existing mortgage involved that's another way to save money and
then on the sell side
calculators. We of course have the one we talked about which is the net proceeds calculator.
There's also a flip tax calculator tax deduction calculator for coops and a chance for tax calculator among others.
So thank you for watching. And again, please leave us a comment or send us an email if you have any questions or ideas.