Many Homeowners are surprised when their agent shows them the “net” sheet. This form gives an estimation of funds you should receive at the closing table. The reaction is usually, “where did all of my money go?” Educating yourself will help avoid the eye-opening costs required to sell your home.

 

Let me start with a word of caution. Each State, County and Locality have unique costs associated with selling. Also the type of property, be it single family, condo, farm etc could all have distinctive charges. Make sure to question your agent and lender about these possibilities. With that said let’s walk through what I consider standard costs when selling your home.

 

REPAIR COSTS – Remember the loose board on the deck or that coat of paint you have been putting off? Now is the time to complete those tasks and make your home more marketable. Costs can vary from a few hundred dollars to thousands depending on the repair.

 

HOME INSPECTION – Paying for this inspection service runs between $300 – $500. Completing this before going live on the market will give you assurances no surprises will surface if the buyer requests their own inspection. Buyers will also feel more confident about the condition of your property.

 

COMMISSION – This is normally your highest expense. You are the hiring the agency to sell and represent your interests during the process. Typically fees for this service are 6% of the selling price.

 

EXCISE TAX – These fees are regulated by State and County and are also based on the selling price. Seattle market areas averages 1.78% and these fees go mostly into the general operating fund.

 

The following fees below average 1-2% (of the sales price) combined.

 

SETTLEMENT CHARGES – Typically fees for service charged by the closing company to complete the sale.

OWNERS / LENDER TITLE INSURANCE – These policies give assurances to the Buyer and Seller that the title is free from defects.

PROPERTY TAXES – You are required to pay taxes until the date of closing. Depending on the date you may receive a refund based on when taxes were paid.

 

YOUR NOT DONE – Don’t forget about paying the moving company and house cleaning service on settlement day.

 

Hopefully this has given you a better understanding of the costs involved in a real estate transaction. Understanding and controlling these fees will allow you to retain the most equity possible when this day comes.

 

ReallyONE.com was founded to simplify the process of buying and selling real estate.  We have done this by merging traditional real estate best practices with the money-saving efficiency of current technology.  “The outcome will enable everyone to sell his or her home for a fraction of traditional costs”, ReallyONE can help reduce the cost of your commission by 5%.