Net Proceeds

Most home sellers are also in the process of buying a home, so your net proceeds-the amount of money you walk away with-can greatly affect your plans. Associated costs such as legal fees, agent fees and commissions will be subtracted from the sale price, so what you get is usually a bit less than what your buyer pays.

Net proceeds vary between Laguna Beach homes, as many of the fees are dependent on the property type and value. Your Laguna Beach real estate agent can help you work out the closing costs and estimate how much you can get from the sale. In most cases, the net proceeds are affected by the following expenses:

• Payoff on current loans. Unless the home is fully paid for, the amount of money you still owe your mortgage lender will be subtracted from the sale price. Any line of credit, home equity loan, or renovation loan secured by your home will also be taken from your net proceeds.
  
  
• Attorney's fees and escrow fees. Besides assisting in legal paperwork, real estate lawyers often act as escrow agents-third parties who hold your down payment or deposit until they become due. Attorneys can charge by the hour or a flat fee starting at around $400.
  
  
• Disbursements. These are the costs associated with legal processes involved in the sale, such as title search, couriers, and mortgage discharge fees on the land title.
  
  
• Property taxes. This is a yearly fee based on the value of your Laguna Beach property. You can arrange with your buyer as to who will pay the taxes for the partial year they will be occupying the home.
  
  
• Transfer taxes. The state charges a transaction fee for transferring property within its jurisdiction. The fee may range from .01% to 2.2% of the property value, or a difference of several thousands for most homes. Check your local Recorder of Deeds or a ask your Laguna Beach real estate agent how transfer taxes are calculated in your area.
  
  
• Home warranty. Sellers are required to purchase a warranty for everything that will be included in the sale, such as appliances, pipes and electrical wiring. This usually covers the first year after the closing date and starts at $350.