The Cost of Selling Your Home – 8 Things to Think About!

Here are 8 costs you’ll need to be covering from the sale of your home 🙁

1. Realtor fees.

Typically these are around 6%. Your broker will split the fees with the buyer’s broker after the sale closes. Generally the split is 50%, but it depends on the terms of the listing.

2. Closing costs.

These can add up to 2 percent to 5 percent of the purchase price and include title transfer, any county transfer taxes, escrow charges and other miscellaneous fees. Read more about closing costs. I found out today, from a CPA, that apparently if you haven’t paid any property taxes yet, you can ask the buyer if they will pay them and you can still claim a tax deduction for the period of time when you owned the house. In a hot market, that’s actually better than more cash and doesn’t hurt the buyer!

3. Home Warranty

If you house is a little older, paying for a home warranty is a great idea. With some home warranties, the cost is taken at closing, but you can use it before closing. Therefore it’s a great idea to buy one when you list the house! A home warranty can also stop buyers haggling over the price and repairs.

4. Repairs

Even though home warranties do cover many defects, in some cases you will still need to do repairs, either because the warranty excludes the item, or for cosmetic repairs.

5. Title Insurance and Leins

Often you’ll be expected to buy a title insurance policy. This policy protects the buyer in case there’s an issue with the home’s ownership history. Buyers also buy a title policy if they apply for a mortgage, but that policy only protects the lender.

The title company will run a title search on the property during the sale process. If a lien on your home is revealed, you’ll also need to settle it before you can sell the house.

6. Termite Inspection

You may be on the hook for a termite inspection. If you currently have a pest control company, they may do this for free.

7. Your Current Mortgage

Obviously, you’ll need to pay off your current mortgage, if you have one, so that the title can be transferred.

8. Buyer Closing Costs

In a slow market you could offer to pick up some of the buyer’s closing costs. However, oftentimes the settlement company and/ or mortgage lender may do this to win the business.

Unfortunately will probably be more….