With all the chaos that comes with the home selling process, it’s common for potential home sellers to overlook the costs of unloading their property.
Some expenses are negotiable, but sellers should still expect to foot all or part of the bill for the various costs of selling a home, including taxes and closing costs.
How much will it be? Plan for a significant portion (5%) of the purchase price to cover real estate agent fees, which are typically paid by the seller.
Add to that costs such as attorney fees, notary fees, registration fees, title-related fees, and all the other small administrative expenses that go into closing a deal.
Depending on your state, there may be property taxes and transfer taxes; If you’re paying off a mortgage, the lender will likely charge you some fees as well.
It’s a good idea to be prepared, so you won’t get a nasty shock when the final number on your closing statement is lower than you expected.
Below is a summary of typical vendor costs, and how much they will charge you.
How much are real estate commissions?
The real estate commission is usually the largest fee paid by a seller — historically somewhere between 5 to 6 percent of the sales price.
So, if you sell your house for $300,000, for example, you could end up paying $18,000 in commissions.
The commission is split between the seller’s agent and the buyer’s agent, and in most cases, this cost is borne by the seller. However, you may be able to negotiate a lower commission. Real estate agents are more likely to accept a lower price when the home is expected to sell quickly, when the local market is strong or when the home’s price is relatively high.
Another reason to work with an agent is that someone with experience in the market can advise you on the best time to sell,
Which may limit the length of time your listing stays on the market accumulated.
If it takes a while, you may still be stuck with what are commonly known as forbearance costs:
Ongoing mortgage payments and homeowners association (HOA) fees,
For example, while you are already moving to a new place.
Unavoidable expenses
When you sell your home, there are a number of non-negotiable expenses that will eat into your net proceeds. The following examples may not apply to every sale,
But when it happens, it’s hard to avoid.
How much are real estate commissions?
The real estate commission is usually the largest fee paid by a seller — historically somewhere between 5 to 6 percent of the sales price.
So, if you sell your house for $300,000, for example, you could end up paying $18,000 in commissions.
The commission is split between the seller’s agent and the buyer’s agent,
and in most cases, this cost is borne by the seller. However, you may be able to negotiate a lower commission.
Real estate agents are more likely to accept a lower price when the home is expected to sell quickly,
when the local market is strong or when the home’s price is relatively high.
Another reason to work with an agent is that someone with experience in the market
can advise you on the best time to sell,
Which may limit the length of time your listing stays on the market accumulated.
If it takes a while, you may still be stuck with what are commonly known as forbearance costs:
Ongoing mortgage payments and homeowners association (HOA) fees,
For example, while you are already moving to a new place.
Unavoidable expenses
When you sell your home,
there are a number of non-negotiable expenses that will eat into your net proceeds. The following examples may not apply to every sale,
But when it happens, it’s hard to avoid.
Mortgage bonus
The proceeds from the sale of your home will be used to pay off your mortgage,
But the bonus amount on your mortgage statement will likely be slightly less than what you actually owe.
You will probably have to add the accrued interest prorated to the total balance,
and in addition, you may have to pay a fee
If your mortgage carries a prepayment penalty (check your loan documents or contact your lender to find out).
For more architectural news
