Costs of Selling a Home:
How to Estimate Closing Costs and Net Proceeds
What’s the price of selling your home? As a seller, you’re bound to face a parade of taxes, fees, commissions and miscellaneous closing costs that can whittle away up to 4 to 7 percent of your home’s sale price.
Costs vary from state to state, but in general these are some of the closing fees you may encounter:
- Mortgage payoff balance. Deductions from the sale price include your own home loan, second mortgages and home-equity lines of credit.
- Loan payoff fee. Some lenders may charge you an administrative fee to pay off your loan.
- Lien releases. If you owe money to a contractor or for court judgments or property taxes, a lien may have been placed on your property. You must pay those liens before the sale can close.
- Prepayment penalty. Find out from your lender if there’s a penalty for paying off your loan early.
- Recording fees. If you owe money on the property, you need to pay this fee to show that your debts have been fully paid.
- Commissions for listing and selling agents. This is the price you pay to the agents for making the sale of your house. Usually the fee is 6 percent, with half going to your agent’s brokerage and the rest going to the buyer’s agent’s brokerage. The agents get paid by their respective brokerages.
- Notary fees. Fee charged by a notary to verify your identity and to make sure the documents are executed properly.
- Escrow fees. The escrow company is the intermediary between you and the buyer, ensuring that the money is handled properly. Escrow agents receive money from the lender, pay off your mortgage and closing costs, collect deposits and give the proceeds to the lender. You may be able to split these costs with the buyer.
- Title search fees. Title insurance is not insurance per se but says that you have the legal right to sell your home. Title companies search public records to come up with a title insurance commitment. That commitment says you own the home, and it details anything else that may affect the title, such as mortgages, liens, easements, restrictions and home owner association declarations.
- Seller concession. A seller concession helps buyers pay their closing costs. If the buyer asks you for a concession of, for example, 3 percent, that amount will be added to your agreed-upon home price, and you will give back that 3 percent to the buyer to pay for closing costs.
- Repairs. You may be required to pay for repairs, either by negotiation with the buyer or by a condition of the lender.
- Home warranty. Sometimes a seller will agree to foot the bill for a home warranty that offers a protection plan for the buyer’s first year in the home.
- Termite letter. This document is required in certain parts of the country.
Diana Lundin wrote this article.
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RE/MAX REALTY CENTER, Real Estate in Wisconsin
RE/MAX REALTY CENTER, Real Estate in Wisconsin
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Please feel free to contact us for any of your residential or commerical real estate needs including an online market if you are a seller, or finding a home if you are a buyer.
Our real estate focus in the Waukesha County, Milwaukee County, Lake Country, Jefferson County, Dane County, Dodge County and Washington County areas. Several agents in the office also their IRES designation (International Real Estate Specialist) so they can assist you with all your real estate needs in Wisconsin, the USA or anywhere in the WORLD!
When you are seriously looking or just browsing at real estate in Wisconsin, RE/MAX REALTY CENTER, Real Estate in Wisconsin, is the BEST resource to help you with all your needs and questions, whether a first time home buyer, relocating to or from the beautiful LAKE COUNTRY area, looking to invest or explore foreclosure opportunities or just thinking ahead to the future.
Lisa Bear is the broker/owner of RE/MAX Realty Center, Real Estate in Wisconsin (262-893-5555) is an experienced real estate agent in Waukesha County and the entire Milwaukee Metro area. Lisa thinks "outside of the BOX" and encourages her agents to do so as well. If you want creative options and exceptional marketing and service - look no further!
The RE/MAX Realty Center Office, has experienced agents with expertise in luxury home marketing, lake property experts, foreclosure and short sale specialists, investment and property management brokers and commercial brokers.
Our agents areas of service include, but are not limited to:
The prospering communities of Waukesha County including Delafield, Waukesha, Oconomowoc, Pewaukee, Waukesha, Sussex, Wales, New Berlin, Dousman, North Prairie, Mukwonago, Chenequa, Menomonee Falls, Brookfield, Elm Grove, Okauchee, Eagle, Muskego and Merton.
Great municipalities in Milwaukee County including Milwaukee, South Milwaukee, Wauwatosa, Hales Corners, Greenfield, Glendale, Franklin, Bayside, Brown Deer, Cudahy, Fox Point, Greendale, Shorewood, Oak Creek, St. Francis, West Allis and Whitefish Bay.
The hometown favorites of Washington County, Jefferson County and Dodge County including Watertown, Hartford, West Bend, Germantown, Jackson, Richfield, Ashippun, Lake Mills, Jefferson, Johnson Creek, Slinger and Erin.
There is no place like "WISCONSIN LAKES"If lake living is what you desire then Lake Country is the place to be! If you are thinking about buying waterfront property in Wisconsin, a little time invested in learning about waterfront living will pay back sizeable dividends in matching your expectations to realities.
Lake Country Living on one of Waukesha Countys great lakes as a full timer or vacationer is a must and there are some great lakes to choose. Nagawicka Lake, Pine Lake, Oconomowoc Lake, Beaver Lake, Okauchee Lake, Pewaukee Lake, Moose Lake, North Lake, Lake Keesus, Lac La Belle, Upper Nashotah, Lower Nashotah, Upper Genesee, Lowe Genesee, Middle Genesee, Upper Nemahbin, Lower Nemahbin, Fowler Lake, Golden Lake, Pretty Lake, Silver Lake, Waterville Lake, and Crooked Lake. Great lakes of the surrounding area also include Lake Michigan, Rock Lake, Big Cedar Lake, Little Cedar Lake, Pike Lake and Lake Ripley.
RE/MAX REALTY CENTER, Real Estate in Wisconsin, 262-567-2455 or 262-893-5555, offer online markets, listing package and FOR SALE BY OWNER (FSBO) options, MLS search access, buyer agency and marketing that will exceed your expectations, all with outstanding service!
Your home purchase or sale is likely your largest investment, be sure you have an good agent you can trust! Real Estate in Wisconsin is an excellent investment, prices are superb, selection is great and rates are outstanding!!!
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