There are seven main costs of selling a home that you need to be prepared for.
Here are the seven main costs you need to be prepared for if you’re thinking of selling your home:
1. The seller’s closing costs. This will cover the title fees associated with getting your home sold. These fees can include the costs of deed preparation, the title search, and other items the title company can charge to you, which can cost anywhere between $300-$400 or $700-$800.
2. The buyer’s closing costs. Why would you be paying for the buyer’s closing costs? The buyer may have saved up enough money for their down payment, but they may not have the funds to cover their closing costs, so they may ask you to do it. You might not like the sound of that, but if they’re willing to pay a higher price, does it really matter who pays the closing costs?
3. The home warranty. A lot of buyers ask for the seller to pay for a home warranty policy for the first year of home ownership, so you won’t be responsible for coming back and repairing any items—the home warranty company will take care of that. All the buyer is really asking you here is to cover the cost of the home warranty, which will be anywhere from $400 to $800.
4. Property taxes. Depending on where your home’s located in the southern Indiana area, the way your property taxes are handled can vary. In some parts, they prorate them to the date of ownership. In our state, we pay our property taxes in arrears, which means when you pay your November tax bill here in 2018, you’re actually paying for the second half of 2017’s property taxes. In order to prorate that, you’ll typically have a year’s worth of property taxes to pay for. In other parts of southern Indiana, the seller typically pays the next installment, and the buyer takes over after that.
5. Survey costs. Most buyers don’t ask for a survey, but if they do, the seller typically pays for it. The cost of this survey can vary wildly depending on how much land you have. Ultimately, you’d have to contact a surveyor to get an exact quote.
6. Professional realty marketing fees. If you like, you can have a real estate team (such as ours) come out to your home and put together a marketing plan with a fee system that makes sense for you.
7. Inspection repairs. Unfortunately, whenever you sign a purchase agreement to sell your home, you don’t know what the inspection will uncover. Depending on what the home inspector finds, your repair costs will range from a couple hundred dollars to several thousand dollars. To get a good idea of what you’ll have to pay, you can always order your own inspection before you put your home on the market.
If you have any more questions about any of these costs, just give us a call and we’d be happy to come out to your home and put together a fee analysis for you.
As always, if you have any other real estate questions, feel free to reach out to us as well. I look forward to speaking with you.