What do you really want to know when you sell your home? That’s easy. How much money am I going to get when this is all said and done? Or, in some cases these days, how much am I going to have to shell out to get this house sold? Here’s 10 Costs you Should Consider When Determining Your “Seller’s Net”; also known as, money in your pocket.
This is usually the big one. Call you bank and find out what your payoff will be on closing day. Your bank should be able to give you an exact dollar amount.
Closing Fees – Lender
Unless you have a prepayment penalty, you shouldn’t incur any closing fees from your lender. The fees you may incur in the current market are part of ’seller concessions’ that are part of the negotiation you have with the buyer. Many buyers ask for 3% of the purchase price in closing costs or a specific dollar amount.
Closing Fees – Title Company
This is the fee your closing company charges to actually put together and close the transaction. At least in Northwest Arkansas, closing fees range from $125 to $175 per side. You may expect to pay more if you have a split closing (buyer and seller close with two different companies).
This is calculated through the day of closing. You can find out what this number is if you know your closing date when you call your mortgage company.
Pro-Rated Property Taxes
Taxes can get confusing, especially in Arkansas where we pay in arrears. This means that 2008 taxes are not technically due in full until October 2009. At closing you’ll have to either catch up, or get credit for the taxes you have paid up until closing. Everything will be prorated based on the date.
There is not always a survey fee associated with a property closing (especially if you live in a platted subdivision) but if there is go ahead and bank on several hundred dollars to cover it.
Title Policy Fee
A title policy is like an insurance policy, guaranteeing certain things about the title of your home. This usually runs a small percentage (less than 1%) of the purchase price. Save money by doing a ‘combo’ title policy and splitting the cost with the buyer.
There are various attorney fees that may be associated with the sale of a home. They usually end up on the settlement statement so it is a good thing to know what attorney costs you may incur ahead of time. Certain documents require preparation by a real estate attorney and they charge accordingly.
Buyer’s Agent Fees
If you sell your home yourself, congratulations! You’ve achieved what about 95% of other home owners don’t accomplish. No buyer’s agent fees for you. For everyone else, remember to include what ever fee the buyer’s agent is charging in closing. While a certain percentage may be customary a commission is negotiable. Negotiate too far and you may not get your home sold.
There may be other fees associated with the sale of your home; termite transfers, home inspectors, mold and specialty inspectors if there is a pre-existing condition. All of these must be taken into account.
If you need a little help after looking at all these fees and expenses take a look at this Seller’s Net Proceeds Worksheet I created. It might help you out.