5 Common Fees That Need To Be Paid When Selling A Home
Selling your home can be exciting but it can also bring fees that you might not have considered. Before you start counting your dollars and debating the size of the down payment for your new home, you need to calculate the closing costs for the seller (which is you). While buyers pay closing costs, you will see a long column on the HUD-1 Settlement Statement for seller costs. Closing costs for sellers vary according to where you live, but as the seller you can expect to pay anywhere from 6 percent to 10 percent of the home’s sales price at settlement. This won’t be cash out of your pocket, rather it will be deducted from the profit on your home — unless you are selling with very low equity. In which case, you may need to bring a little cash to the table.
The following are the fees you would need to look out:
Seller Real Estate Commissions: Commissions are negotiable, but your typical commission is 6 percent of the sales price of the home split that will be split between listing and buying agent. For a home that sells for $500,000, the commission would come to $30,000.
When you pay off your loan before ending the term.
Your costs will often be a tab bit higher than the remaining balance on your loan because of prorated interest. There are cases in which you may have to pay a penalty for paying off the loan before the end of the term. If you have a home equity loan or line of credit, this must be paid in full at settlement as well.
If you need to transfer taxes or recording fees. These would be the taxes imposed by California to transfer the title from old to new owner.
Tile Insurance Fees
Sellers typically pay the owner’s title insurance premium.
Attorney fees are included if you have your own attorney represent you at the settlement. Market traditions vary, so while in some areas both the seller and buyer have their very own attorney for the transaction. In some areas the buyer pays the attorney fees, while in others the seller pays.
Other Closing costs for sellers: judgements and liens against the property, unpaid homeowner dues, prorated property taxes and home owner association dues included up to the settlement date. Home inspections might bring up termite inspection and remediation, if necessary repair bills or a credit for repairs for items found during a home inspection. Repairs like cosmetic repairs will make more home buyers more attractive to potential buyers.
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