The fee’s to sell your house15 May Monica Breckenridge
Now that things in the housing market seem to be stabilizing and prices are on the rise, have you been thinking about selling your house? If so, understanding the costs involved in selling your home is important, as it will allow you understand what your bottom line net proceeds will be at closing. Whether you have equity in your home or you are a homeowner needing to break even, this article will help you understand what the costs are. It will also let you know which costs you may be able to split with a buyer and what costs the buyer or the buyer's lender will want you to pay.
When you consider realtor commissions, property taxes, title insurance fees and other miscellaneous closing costs, it is important to know what percent of your home's sale price will be spent on these costs.
Therefore, a big question is being able to answer what your net profit will be when you walk away from the closing table. What expenses will you have to pay when you close? While costs vary from state to state, there are general and customary fees that are typically paid by the seller. If you are considering selling your home, your real estate agent should be able to give you an Estimated Net Proceeds worksheet that will give you an idea of the total costs. However, if you want to do some homework before listing your property, here is a list of some of the costs you can anticipate.
Buyers Closing Costs: The buyer may ask you to pay for their closing costs. This is customary right now in today's market. These costs range from $3500 to $6000. The closing costs depend on the buyer's lender and loan type. It is your choice to pay these costs for a buyer. However, if you choose not to pay them, the buyer may not buy your home. You can counter their offer with a lower purchase price or suggest a lender that does not charge such high closing costs in lieu of paying their closing costs. This is a negotiable expense; therefore, once there is an offer, we can discuss the closing costs to see how much you are comfortable paying. Much of this may depend on what the final contract price is.
Title Closing Fee: There is also a closing service fee and recording fees. These cost approximately $150.
Property Taxes: Taxes need to be paid up to the date of closing. Expect to pay from $600-$4000 depending on your property. You may have an escrow account already set up with your mortgage. If this is the case and you have excess funds in your escrow account, these monies will be refunded to you after closing. You can contact your lender to see what your escrow balance currently is. This will give you an idea of what amount may be refunded to you later. If you are doing a short sale, any remaining escrow balance will be applied to the outstanding balance of your loan.
HOA Dues: HOA assessment fees must be paid through the date of closing. If you have already paid for the current month, you should get a credit for the number of days left in the month after the closing date.
HOA Status/Transfer Letter Fees: The status letter and/or transfer letter fee varies. Some HOAs do not charge a fee for this and others can charge up to $350. This fee is paid to the HOA management company to handle the transfer of ownership paperwork from the seller to the new buyer.
Home Warranty: Some buyers ask that the seller pay for a home warranty. The average cost is around $300. This is also a negotiable expense.
Judgments or liens: If you have any creditors that have placed a judgment against you, these judgments attach to the property you own. Any liens or judgments against the property must be paid at closing to clear the property title for transfer.
Water: Some water districts require the final water bill be paid in full at or before closing.
Commissions: The seller is responsible for the commissions paid. The amount of commissions to be paid is noted on the listing agreement. The standard amount paid for the transaction is 6% of the sales price.
Repairs: After the buyer does their home inspection, the buyer may ask you to pay for some repairs. The amount of the repair costs will vary and are negotiable.
There may also be other fees you have to pay. Therefore, it is best to be represented by a reputable Realtor who can outline the fees that are customary and those that are negotiable. Your Realtor can discuss these costs with you at the time your property is listed and help you negotiate the fees at the time a buyer submits a contract to purchase your property.
The market is changing and selling your home can be overwhelming. Be sure to hire a Realtor who is experienced and knowledgeable and will not only help you sell your home, but is also willing to work for you and help you negotiate the best terms of your sale.
Pink Realty is here to help homeowners sell their home. They represent you and want you to achieve the best outcome you can. They have the experience, the knowledge and the dedication to work for you. If you are in the market to sell your home, call the experts. Call Pink!