The Costs of Selling a Home
We all know that buying a home can be a large expense; however, sellers also need to be aware of the costs and fees on their end of the deal. One of the largest expenses in selling a home is the real estate agent’s commission. Typically, the seller pays 6% commission on the sales price of the home- 3% to the selling agent and 3% to the buying agent. Although this seems like a large expense, a REALTOR®’s expert knowledge and guidance (from pricing to closing) are invaluable to the selling process.
In addition to the commission, sellers also pay closing costs. Depending on the sales contract, sellers will pay for a home warranty, a survey, an HOA transfer fee, a title policy and title fees, attorney fees, arrears property taxes, and possibly even some of the buyer’s closing costs. While this may seem like a small fortune, sellers should expect to negotiate a few of those fees, resulting in fewer closing costs. Depending on the sales price of the home, the seller should ultimately expect to pay between 7-10% of the sales price on closing fees.
closing:The final, legal act of a transaction, where contracts are agreed upon and finalized, and monies are exchanged.
