Selling a house can either be positive, or slightly disappointing depending on when you purchased your home. If you bought it a long time ago blow market value, for instance, the value will likely have gone up and you will pocket a lot more than you shelled out at the time. However, if you bought your house at market value and the market is slow, or has gone down altogether, you might want to really consider if it is worth to sell your house now or wait.
Each and every home is different. Due to this fact, there is no way to tell exactly how much your home will sell for. Do realize, that you will be paying a commission to your realtor, and that does not come cheap. Sometimes it can vary between 2% to even 10%. These factors are determined by the realtor themselves, the realtor’s company policy, and the area where you live.
When you sell a house, you pay commission to the selling and listing agent as well, not just your realtor. While many realtors are willing to negotiate their fees, some aren’t, and this is a factor to think seriously about.
Title insurance guarantees to the buyer that the home has a clear title. This title insurance is there to make sure all loans are paid off, and all judgments and liens are paid off. The cost of title insurance depends on the state the house is located in. Note that you will be paying the title insurance, not the buyer.
Note that the closing company is going to be charging you a fee to handle the closing. This can range from a few hundred dollars to $1,000. There are also fees to record any mortgages that must be released, and wiring fees for loan pay-offs. These fees can range up to $600 depending on how many loans and pay-offs are involved in the equation.
When you are selling your house, you are responsible for the taxes and the utility bills up until the very day that you close on the house. Your taxes have to be paid at closing before the house is sold. If the escrow account is holding extra money, note that it will be returned to you after closing.
Neighborhoods that have an HOA have to pay a monthly fee. Most charge transfer fees for a status letter; these fees can range up to $160 and sometimes over that amount. The contract will decide who pays these fees in negotiation; sometimes it is the seller, other times it is the buyer, depending on what you agree upon.
Understand that the mortgage pay off on a house you are selling is likely going to be higher than you think it is. The mortgage payoff is calculated up to the day of the sale, just as taxes. The amount is calculated after you make a payment on the loan. Every day after that principal amount is calculated by the bank, the interest will increase. This can come as quite a surprise to sellers who expect their payoff to be the same as their last mortgage statement principal balance.
At times, buyers might want the seller to pay closing costs; this may be because they need to get a loan. Closing costs can go anywhere from 2-4%, and most times, the buyers that request this are doing so because they don’t have the cash to pay it. It is not uncommon for the seller to pay about 3-4% of the closing costs for the buyer.
The best way to get the most money is to have your home in top condition when you sell the house. Most buyers don’t want to purchase a home that needs a lot of work; because of this, try to make sure that any touch-ups you are able to pay for and perform that need to be done, are done.