With all the talk in the media of the real estate market being a buyers market and the startling statistics on foreclosure rates you may wonder how smart it is to sell your house now. There are several expenses you should be aware of before listing your home, so you are not caught off guard.
Sales commission: This is the fee charged by the listing agent and the buyers agent. This is typically between 4 and 6 percent of the total sales price.
Closing costs: While not mandatory that the seller pay these fees, it is not uncommon for the seller to cover these costs for the buyers. These fees include property taxes, prorated property taxes and legal fees. The fees can be as much as 2 to 4 percent of the home’s sale price.
Mortgage payoff: This is the difference between your outstanding principal balance and the payments you will make before the closing date. It is important to verify if you have a pre-payment penalty for your loan, since this will increase your total payoff.
Pre-sale repairs and/or cosmetic fixes: These fees can be as little as a $50 coat of paint or up to several thousand to replace appliances or house structure repair. These repairs will be negotiate prior to any parties signing a final contract. It is a good idea to have an appraisal performed prior to listing your home, to have an idea of what major repairs may be needed to sell your home.
Moving expenses: This is easy to overlook when you are selling your home. But, you are also moving somewhere new and have to pay all those costs. From moving trucks, utility deposits, and down payments.
Selling your home does not have to be overwhelming, it will save you stress and money if you know what to expect.
