Home Sale Profit Calculator

Do you wonder how do you calculate profit from home sale? Making a profit when you sell your home is important to a lot of people. Not only do you want to avoid wasting the money you’ve put into the place, but it’s also always good to seize opportunities that can enable you to make money. Of course, though, while most people want to make a profit when they sell their home, very few understand the real factors that will go into this. To help you with your home sale profit calculator, this post will be exploring some of the best ways to make sure that you are able to make a nice big profit when you sell your next property.

This post may contain affiliate links, I earn from qualifying purchases at no extra cost to you. Click here for my disclosure policy

Do you wonder how do you calculate profit from home sale? Making a profit when you sell your home is important to a lot of people. To help you with your home sale profit calculator, this post will be exploring some of the best ways to make sure that you are able to make a nice big profit when you sell your next property.

Stamp Duty & Other Taxes

Like most things in life, your government is going to want to be able to take a piece of the pie when you sell your home. This usually comes in the form of stamp duty, and this is a payment that is made when the transaction occurs. Alongside this, though, you can also end up having to pay other kinds of tax depending on your situation. For example, if you are working as a property developer and are selling houses as a private business, you will probably need to pay some income tax on the homes that get sold.

You can’t avoid tax without getting into trouble down the line, making this something that you have to factor into your sale no matter what. These taxes and duties will usually depend on the cost of the house, with those that are more expensive having higher levels of tax applied to them. Of course, though, there are ways to play the system to make sure that you pay as little as possible, and learning about the taxes you have to pay can be very useful when you’re approaching this.

Estate Agent Fees

The estate agents responsible for selling your home will also want to take a piece of the pie, but this will be over a much longer period. They will charge a monthly fee to have your home advertised with them, along with making you pay for each viewing and the sale at the end of it all. This can work out to be a small fortune, pushing a lot of people to look for ways to sell their home by themselves.

The longer your house is on the market, the more you will have to pay for this aspect of your property sale. This can make it worth asking for a fair price for the place, as it can save you money in the long-run compared to struggling to sell an overpriced home. Alongside this, you should also do some research to find the cheapest estate agent you can, as this will also impact the money you have to spend on this part of the job.

Prior Renovations

Many people work hard to make sure that their home looks great before they sell it, but this can easily eat into the profits you would have made if you’re not careful. Repairing things may not increase the value of the home, but you will still have to pay for them, and this is something that most people will want to avoid. You need to make sure that you factor the money you spend on your renovations into the profit you’re likely to make from the place.

Choosing renovations that will improve the value of your home for little cost is the best way to go with this. Redoing your whole kitchen would cost a fortune, but probably wouldn’t raise the value of your home. Painting rooms, laying new carpets, and replacing things like windows could easily make it easier to sell the place for more, though, and they wouldn’t cost a fortune to have done in the first place. If you’re going to renovate your home, you need to make sure that you’re not going to spend more than you will make back.

Here's our living room today, and after 19 years in this house boy has it changed! It's well used and well loved.

Viewings

Finally, as the last expensive area to think about, it’s time to consider viewings. You have to make sure the place is clean, take time out of your day, and will have to pay the estate agent to handle these viewings for you. This makes it crucial that you sell the place with as few viewings as possible, working hard to make sure that people are impressed by what they see.

Selling a house is a difficult process that can take a lot of time and effort. You need to make sure that you’re going to make enough back after you’ve paid for everything, though this can be a challenge when you don’t know what to look for.

If these are some of your questions –