What Does It Cost To Sell A Home?

Selling a home involves various expenses that sellers need to be aware of in order to accurately calculate their net proceeds. In this blog post, we will break down the itemized expenses associated with selling a home. Additionally, we will provide a link to a free tool that allows you to estimate your net proceeds based on your specific mortgage amount and other factors. So, let's dive into the details and understand the expenses involved in selling a home.

1. Closing Agent Fee: The first expense when selling a home is hiring a closing agent, which can be either a title company or an attorney. This professional handles the legal aspects of the closing that are beyond the scope of a real estate agent. The average cost for a closing agent is approximately $700.

2. HOA Resale Packet Fee: If your property is part of a homeowners association (HOA), you will need to obtain an HOA resale packet. This fee is around $300. If your property is not part of an HOA, you can subtract this cost.

3. Well and Septic Inspection Fee: For properties with well and septic systems, an inspection and pump-out are necessary. The cost for this service is approximately $800. If your property has county or city water and sewer, you can exclude this expense.

4. Termite Inspection Fee: In most real estate contracts, sellers are responsible for a termite inspection within 30 days of closing. The typical cost for a termite inspection is around $30.

5. Mortgage Payoff Fees: If you have a mortgage, there are several fees associated with paying it off. These include a recreation fee ($35), release fee ($50), require fee ($45), and wire/FedEx fee ($20). These fees cover various aspects of preparing and delivering the mortgage payoff.

6. Prorated Real Estate Taxes: The amount of prorated real estate taxes owed at closing depends on your specific property and the time of the year. This fee varies and is usually offset by the funds in your escrow account, which is maintained by your mortgage company.

7. Seller Paid Home Warranty (Question Mark): While not applicable in all situations, sellers may choose to provide a home warranty to buyers. The cost for a home warranty is approximately $600, but this expense may vary depending on market conditions.

8. Seller Concessions (Question Mark): In certain situations, sellers may agree to contribute to the buyer's closing costs. The amount of seller concessions varies based on negotiations and market conditions.

9. Seller's and Buyer's Agent Commission: The standard commission for real estate agents is typically 3% on each side of the transaction, totaling 6% of the sale price.

Selling a home involves various expenses that sellers need to consider to accurately calculate their net proceeds. By understanding these expenses, sellers can make informed decisions and have a clearer understanding of their financial position after the sale. It is essential to consult with professionals, such as closing agents and real estate agents, to ensure accurate calculations and a smooth transaction.

To estimate your net proceeds based on your specific mortgage amount and other factors, you can use the free tool provided in the description of this blog post. If you have any questions or need further assistance, feel free to reach out via direct message or leave a comment. Thank you for reading, and we look forward to providing more valuable information in the future.