A series to help you prepare for a home sale
My new series will discuss prompting questions to ask yourself to get ready to sell your home.
I’m not here blowing smoke, I’m here to give you some facts about real estate. .
How much money will you earn when selling your home? The first question explains: What Closing costs do Sellers Have to Pay?
- If you do not own your house free and clear, then the old mortgage will have to be paid off.
2. The buyer may ask you to pay for their closing costs. They can ask legally up to 3% so if you have a $300,000 house they can ask $9000 in closing costs. The good news this is completely negotiable.
3. The commission you have agreed to pay your real estate agent, usually 6% which usually includes 2.7% split to the buyer’s agent.
4. The buyers may ask you to buy them a home warranty and that costs between $400 and $500 depending on what you are putting under the warranty.
5. Pro-rated property taxes. You will pay your property taxes from the start of the fiscal year through the closing date and then the buyers pay the property taxes from the date of closing to the end of the year. May 15th to October 15
Finally, At the closing table will see the Alta Settlement Statement, and these are the title fees.
State deed tax approximately $3.40 per $1,000 of sales value for example if you purchase $300,000 it would be $1020.
Document fee, processing fee, and recording fee approximately $575 dollars
There is also my broker admin fee of $399 dollars to pay my administration fee for the transaction.
That’s it that’s a wrap! Now you know what closing costs to expect when you sell a home!
As you can see many costs are negotiable. What does a seller typically pay for in 2021?
In today’s market the buyer asking for you to pay their closing costs, purchase a home warranty, and do home repairs during an inspection? -not so much these days. It is very common, today, that the seller will pay minimal closing costs because they have because you may have another buyer just waiting in the wings and willing to jump on that contract without any demands.