How do I estimate what I'll actually walk away with after the sale?
When homeowners think about selling, they often focus on the sale price.
What really matters, however, is how much money remains after all selling costs have been paid.
In a recent video, Diego explained a simple way to estimate your likely net proceeds before your property even goes on the market.
Start With the Sale Price
The easiest approach is to work backwards from your expected sale price.
For example, let's assume your property sells for $1 million.
From that figure, you'll need to deduct all costs associated with the sale.
While the exact numbers vary from property to property, the process remains largely the same.
Agent Commission
One of the largest costs is usually the agent's commission.
Using Diego's example, a commission of approximately $35,000 would be deducted from the sale proceeds.
This immediately reduces the amount you'll ultimately receive after settlement.
Marketing Costs
The next expense is marketing.
A typical campaign may involve professional photography, video production, aerial imagery, online advertising, and listing fees.
For this example, let's assume marketing costs total $5,000.
Legal Fees
Most sellers should also budget for legal expenses.
Conveyancing fees vary, but Diego generally uses $2,500 as a practical rule of thumb when estimating costs.
Having an experienced property lawyer involved can help ensure the transaction progresses smoothly.
Don't Forget Moving Costs
One expense that's often overlooked is the cost of relocating.
Whether you're moving across Auckland or to another part of New Zealand, removalists, transport, storage, and related expenses can quickly add up.
As a rough estimate, Diego suggests allowing another $2,500 for moving-related costs.
Plan Before You Sell
Understanding your likely net proceeds is an important part of planning your next move.
Whether you're upsizing, downsizing, relocating, or purchasing another property, having realistic numbers can help you make more informed decisions.
A simple calculation before going to market can eliminate surprises and provide greater confidence throughout the selling process.
