You’ve Got To Spend Money To Make Money: How Much You Can Expect to Spend Selling Your House
When you sell a house, its either going to be a pleasant experience, or a disappointing one, depending on how long it takes to sell, and how much you get for it. 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. See: Home Sale Proceeds Calculator – How Much Will I Get?
So, How Much Will it Cost You to Sell Your House?
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, which will be expensive. 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. See: Realtor Commission Cost Calculator.
Title insurance is necessary to show 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.
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. See: What’s My House Worth?
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. See: Closing Costs Calculator.
Know in advance, that the mortgage payoff on the home is 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. Read on for: Top 5 Expenses When Selling Your Home.