Any decent Realtor will give you a net sheet sometime prior to closing, but I also recommend you become familiar with these costs make sure you aren’t getting the short end of the stick.
The Cost Of Selling A House
Sales Commission – This is going to be your biggest cost associated with selling a home. Realtor commissions can be up to seven or eight percent of the sales price, although it’s more common at six percent. If you’re selling a $300,000 home, that could be anywhere from $15,000 to $24,000!!! Of course, these numbers are all negotiable with your agent.
Hopefully, when you signed your listing agreement with your agent, you worked out a commission agreement you were comfortable with. A good agent will do a net sheet at the listing appointment to show you how much you need to get out of your home to pay for this expense. I always do a net sheet at listing appointments so my sellers know exactly what they are paying.
Property Taxes – No matter when you sell your home, you will have to pay the property taxes up to the day you transfer title. The title company will pro-rate the taxes, and you will have to pay what you accrued before you sell. If you have already paid your taxes, be sure to let your agent know, and bring some sort of proof to closing so you don’t get double charged.
Closing Costs – Many sellers today are paying for buyers’ closing costs in order to get a deal done. If you agreed to a closing cost allowance, be sure to deduct that from the sell of your home. Closing costs usually end up being around two to seven percent of the purchase price on the home. Talk to your escrow officer about these costs before heading to closing.
Transfer Fees – Real estate transfer taxes are state and local taxes that are assessed on real property when ownership of the property is transferred between parties. Many also refer to these taxes as the Death Tax. Also, you need to be aware of the Capitol gains tax, which can be deferred as long as you you use a 1031 exchange form. Learn more about transfer fees here.
Document Fees – There are a lot of documents that need to be printed and dug up when selling a home. Title companies will charge you a doc fee as well as a notary fee for their services. I would recommend calling around to a few title companies to get a competitive price.
Required Repairs – No matter how new your home is, there can always be repairs that are required by the lender or the buyer before they will buy your home. These repairs could be very minimal or very large depending on how well you maintain your property.
Before you head to the closing table, you should be able to get a net sheet from your Realtor or title company. All fees will be on the settlement statement and will be explained to you at the closing table by your escrow officer.
If you see anything that wasn’t explained to you upfront, be sure to bring it to everyones attention. In this case, your agent or the title company, whoever was responsible for the fee, may have to eat it themselves if you were unaware.