Are you getting ready to sell a house? If so, you’ve come to the right place since closing costs can be an unexpected financial burden for new home sellers. Fortunately, if you understand what goes into them, you can factor these fees into your negotiations.
Read on to know what to expect with house selling fees!
Closing Costs Will Include Real Estate Commission Fees
Before you start planning your next vacation, make sure you have enough money set aside for closing costs. Even though the buyer may spend more on closing costs, you’re not exempt. In fact, you could need to spend 2 or 3% of the sale price of your home.
A big portion of those fees will go toward your real estate agent. They’re the ones with the housing market expertise and connections, after all. Consider asking an agent what their commission percentage is before working with them.
House Selling Fees May Include Inspection Costs
While the inspection itself might not blow your budget, the findings could. For instance, an HVAC system with significant problems could be a big deterrent to your potential buyer. Or cracks in the foundation could be a big red flag.
As the home seller, you may need to agree to handle some repairs if you want the sale to move forward. This could include addressing mold issues or replacing a busted appliance. Work with your real estate agent to determine a fair maximum you’re willing to cover.
Watch for Taxes and Title Expenses
When it comes to house selling fees, it’s easy to overlook the bank or institution that serves as your escrow company. Yes, they will be charging a fee for holding money in escrow and helping you sign all those important documents when you transfer a title.
You may need to split the costs on property taxes with the buyer. You’ll probably be responsible for title insurance. And you may need to pay for the services of a notary when it’s time to go through the closing process.
A Tight Housing Market Can Add More Fees
If you’re selling your home for cash, the closing costs might not be as significant. After all, the buyer will have the necessary reserves to fork over money without a lot of haggling. But if you’re doing a more traditional sale, watch for hidden fees.
For instance, you may need to concede some repairs or other maintenance work. You also may have insurance premiums or mortgage insurance bundled into your payments. Don’t be afraid to ask your real estate agent to break down the prices for you!
Know What It Costs to Sell a House
House selling fees can add up if you’re not careful. From your real estate agent’s share of money to costly maintenance, you can expect to need more than the sticker price of the home. Just be sure to do the math before you sign any of the legal documents!
For more tips to keep your home in good shape, check back for new articles.