Typical Costs When Selling a House

CLOSING DAY COSTS:

1. 1. Marketing & Sales Fee to Broker. This fee is a percentage of the final sales price. The fee amount is based on a combination of factors that have proven to get sellers a top dollar return on his or her property. The seller is paying for expertise, as well as peace of mind. The expertise is a mixture of professional knowledge, time and resources. Selling a house is a complicated and time consuming endeavor. Studies have shown that certain resources & techniques help the Realtor® achieve an average sale price that is anywhere from 6% to 19% higher than that of what For Sale By Owner’s (FSBO) achieve in a given area. Our residential exclusive listing agreements are typically for 6 months. (This gives me the ability to sell your property 2-3 times if need be. Not all purchase contracts make it to the finish line.) My fee will range from 3% to 6% depending on representation type and marketing time. Ask me how you can qualify to pay a lower fee on the final sale price I produce for your property.
   2. County Property Taxes. Because property taxes are paid in arrears, the seller will be responsible for the taxes from January 1st of the current year until the day of closing. The amount is typically calculated using the previous years tax bill.
   3. Broker Transaction Fee. This fee, like the majority of national and local real estate companies, is what I like to call a “quality control” fee. This fee is for the transaction coordinators within the company who review all of the contract paperwork that comes in, and confirms all required items are filled in and signed correctly. Our fee may be the lowest in our area at $295.
   4. Transfer Tax on Deed. This fee is a sales tax on your deed. The fee is determined using the final sales price and a multiplier of .007. So if your house sells for $250,000, your deed sales tax will be $1,750.
   5. Home Warranty. In an older house we usually recommend that the seller offer a home warranty with the sale of the house. A home warranty gives the buyer peace of mind knowing that major appliances, plumbing systems, electrical systems and other items in the house will be covered by the warranty for the first year. Home warranty plans typically start around $400.
   6. Seller Closing Credits. Most instances of seller closing credits are for repairs that are found during a buyer’s inspection. A seller may not be required to make a repair, depending on the purchase contract used, but the deal may hinge on it. Also, every now and then a buyer comes along who may need a little help with closing costs. Buyer’s are typically spending thousands of dollars on their inspections, closing costs and down payment and may need some assistance with closing costs to get the transaction closed. The seller is certainly under no obligation to offer such concessions, but if this is the only offer you have received, and the house has been on the market over 30 days, you may want to consider it.
   7. Miscellaneous Fees. Wire, courier and handling fees are pretty common with these transactions. If the seller is out of the area when the closing takes place, they will need to send back original documents to the closing agent. If they want the funds wired to their accounts there is a wire fee. If anything needs to be recorded with the county those fee’s would be added as well. These fee’s are typically $25-$100 total.