The following list is an estimate of costs associated with selling a house and in no way should be used as the actual costs. All costs will vary depending on who you choose to close your home.
There is a lot more to selling a house than simply finding a buyer, receiving your check, and handing over the keys to the buyer at closing. You need to have an idea of the type of housing market you’re in so you can price your home accordingly and you need to know how to market your home properly.
There are also a number of costs associated with selling your home that you need to be aware of. Some of the costs are listed below along with estimated costs of selling a home…
Commission: There is no set fee for commission, it is 100% negotiable and will vary from broker to broker. The fee charged by real estate agents includes marketing your home to both buyers and other real estate agents, showing your home to prospective buyers, as well as fielding and making calls about your home. Marketing your home should involve listing your property on all the major real estate portals, such as Zillow and Realtor.com, as well as posting manual ads on sites like Craigslist, Facebook, Blog Sites, Classified Sites, and many more.
If the commission negotiated with the real estate agent to sell your house was 6%, and your house sold for $300,000 you would pay a total of $18,000. Normally the seller pays the commission which is then split 50/50 between the listing agent and the buyers agent. In some cases, they may have a variable that reduces the cost if the listing agent finds the buyer. This is called dual agency, some brokers allow it, others don’t. Dual agency is when the listing agent works both the buyer and seller. This is only allowed when both parties agree to it in writing. You never want to choose your agent based on the commission they charge. Not all agents are created equal… Make sure they have a marketing plan to get your home sold fast and for top dollar. The right marketing plan will create more activity and more buyers which normally means a higher selling price, which means more money in your pocket.
Appraisal Fees: A knowledgeable real estate agent will know how to price your house to get you the most money but the best way, and the most accurate, is by having an appraisal completed. The appraiser will look at every inch of the house and will determine its value in the current market. This can vary but range from $400 – $600.
Staging Fees: We’ve all heard the old saying… ‘You only have one chance to make a first impression.’ This holds true in real estate. It is imperative that buyers get a great first impression of your home. It’s common in today’s housing market for sellers to hire someone to help stage and prepare their house for showings. Staging can vary from a few hundred dollars to several thousand dollars depending on how elaborate you want to get. Some furnish the entire house to look like a model home while others prepare by cleaning, decluttering and making the home more presentable.
Closing Costs: The majority of these fees are small, but when added up it can run into the thousands. These are costs paid at closing that many home sellers are not aware of when selling their home…
Closing/Attorney Fees: This fee pays for the services rendered by the closing company.
Deed Preparation Fee: This is the fee for drafting the document that conveys the property from the seller to the buyer.
Payoff/Courier Fee: This fee covers any costs associated with sending payoff to the mortgage company or getting the required documents to and from the respective parties.
HOA Closing Letter: This is a fee that many homeowners associations have started charging the seller for at closing. Many times the seller will be required to purchase this letter from the HOA prior to closing. Be sure to check with your Association as this can be a substantial charge.
Property Taxes: Property taxes are prorated at closing. If your taxes have not been paid at the time of closing, you will be charged from January 1 through the day of closing. The seller will also be required to pay any back taxes that may not have been paid at the time of closing.
HOA Dues: HOA dues are prorated at closing. If you have not paid your HOA dues at the time of closing, you will be charged from January 1 through the day of closing. The seller will also be required to pay any back HOA dues or liens that may not have been paid at the time of closing. There are other fees that are negotiated with the buyer before coming to an agreement. These fees could include…
Buyers Closing Costs Contribution: In Georgia real estate transactions, payment of the buyers closing costs are negotiable. Since buyers typically don’t have a lot of extra cash when buying a home, it is normal for the buyer to ask the seller to contribute a specific amount of money to help cover the buyers closing costs.
Home Warranty: Many buyers will request the seller to supply a home warranty for one year or more, not to exceed a specific dollar amount. This offers the buyer peace of mind when purchasing your home and can be offered to prospective buyers while marketing the property.
As you can see, it can be costly to sell your home. With the help of a professional real estate team, like The Stadler Group, you are more likely to sell your house faster and for more money. You need an aggressive agent who knows how to market and sell homes and is familiar with the rules and regulations in the area.
Spending a little extra money up front will normally give you the best chance to sell your home and maximize your profit. It is important to look at all the costs associated with selling to determine what you can afford and feel comfortable with before committing to the sale.Seller Closing Costs