Closing Costs When Selling A House
This list is strictly an estimate and should in no way be held as the true and actual cost. Costs vary based on companies used. Also, depending on the offer, you may pay part of your buyers fees.
Selling a house is not as simple as finding a buyer, receiving a payment and handing over the keys. To sell a house in today’s market; you must be an expert or have the help of one in both selling and marketing property. There are numerous cost associated with getting your home sold that you should be aware of.
There are many fees associated with selling a home. It is important the both home buyers and sellers alike be familiar with the costs associated with such a transaction. Please see the representative list below, along with examples for average costs of selling a home.
- Commission: Commission is 100% negotiable and will vary depending on experience, location, agency, etc. The realtor fee includes marketing your home, giving tours of your home, setting up open houses, broacasting to other agents, listing your property on popular sites such as Zillow and Trulia, and posting manual ads on sites such as Craigslist, Facebook, Blog Sites, Main Websites and more. Let’s just assume your house sells for $400,000. If the commission you negotiated to sell this home was 6% for example, you would pay $24,000 total. Typically the seller pays the entire commission to both the listing agent and the buyers agent. So it could be that the buyers agent earns $12,000 and the listing agent earns $12,000 to make up that total. It’s up to you and your agent. There is nothing “set” with commission. Again, commission is negotiable and you may have a variable commission that reduces the cost if the listing agent brings the buyer. That’s called dual agency, and some brokerages will allow it, some will not. You don’t ever want to choose an agent based on commission. Not all brokers are created equal and the marketing plan brings more showings which bring more offers which generally means a higher selling price and more money in your pocket. Be careful about choosing a discount broker. You will want to work with an agent who has the budget, tools, and leverage to market your house properly.
- Appraisal Fees: Generally several hundred dollars. The appraiser looks at every inch of your house and determines how much it is worth in the current market. This is usually up to the buyer but in some instances, the seller will pay for one
- Staging Fees: It is important that your home gives a great first impression to potential buyers. It is very common today for property sellers to hire someone to help stage and prep their home by decluttering, cleaning, and making the home more presentable. Staging can be a few hundred dollars or several thousand dollars depending on how elaborate your staging is. Some furnish the entire home and set it up like a new home model.
Closing Costs – Most of these are small fees, but can add up to thousands when calculated. Ask your lender to get you these estimates for your state.
The act of actually selling your home happens in the closing phase, which contains costs that many consumers are unaware of when selling their home:
– Recording Fees: The cost associated with recording a new deed. The cost is typically split between both the buyer and the seller at the county recorder’s office.
– Escrow Fees: A fee that pays for the services rendered by the escrow company. –
Tax Service: This is a one-time-only fee for setting up tax payments, charged by the lender.
– Title Insurance Fee: This fee is associated with the seller ensuring that he/she is giving the buyer a clear title to the property.
– Transfer Tax: This is a state specific rate.
– Re-conveyance Fee: Fee to clear the title of the lien and reestablish the deed of trust to the seller.
– Home Warranty Plan: This may be an optional fee for a one year warranty that the seller pays.
– Form 1099: The 1099 form is required by the IRS to report the sale of a property
– Pest (termite) inspection: If a pest inspection is required or requested, the property will be inspected for pests that can cause structural damage to a home, this may already be included in the home inspection costs.
– Courier Fees: A lot of paperwork changes hands during the closing process, you may be required to pay a courier fee to use a service to get the required documents to and from the respective parties (lender, title company, escrow firm, and county)
– There may be other fees that are paid by the seller if the seller agrees to them during the negotiations with the buyer. Sellers can agree to pay any or all closing costs depending on the mutual understanding between the two parties.
Choose an Agent to help you with the process
With the help of a qualified real estate agent, you are more likely to sell your house quickly and maximize your value. You need someone who knows how to sell a Worcester County house and is familiar with the rules and regulations in the area.
As you can see, it can be quite costly to sell a house. Ensuring that you have the best chance to sell your home means spending a little extra. Remember, it is important to look at all costs separately to determine whether you can afford to sell your house before committing to it.
To help you make in making the decision to sell Contact We Deal Real Estate and we can connect you with an agent to estimate your specific costs.