Costs When Selling A House

Costs When Selling A House2019-09-18T15:49:45-04:00

Typical Costs When Selling A House

In this post we will cover the typical costs you can expect to incur when selling.
*Seller’s Guide Below*

Upfront Costs:

  1. Update, Refresh & Repair. If your house is lacking modern updates, and you are trying to get top dollar, you are going to need to put some money into the house to address certain areas. Depending on how many updates the house needs, we can discuss if certain updates are cost effective or not. Refreshing the house by pressure cleaning, adding a fresh coat of paint, cleaning or rejuvenating flooring, installing new fixtures, adding fresh mulch to landscaping, deep cleaning and repairing deficient items will certainly go a long way.
  2. Pre-Listing Inspections. Home inspectors typically have pre-listing inspection options. By doing a pre-listing inspection you will be able to address minor or major issues before the house hits the market. When buyer’s find undisclosed deficiencies it makes them wonder what else is wrong. A general home inspection and roof inspection is recommended. If it has been a while since the A/C has been serviced you may want to have a company service and check that the system is operating properly. Expect to spend around $250-$550. 

Closing Day Costs:

  1. 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.
  2. 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.
  3. Marketing/Sales Compensation. The marketing and sales compensation fee is a percentage of the final sales price. This fee was determined based on the amount of time agents put in to preparing and marketing the house for sale, the tools and services they pay for and use to market the house and compensation for both sides of the transaction. The average time houses are typically on the market is anywhere between 45-90 days, but a typical listing agreement is set for 6 months. This fee can range from 3%-10% depending on many factors.
  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.

In order to give you an accurate estimate of your total costs, we would need to perform a market analysis to determine market value, and then plug in all of the numbers into our Seller’s Net Sheet. This will give you an estimated amount of what you could expect to receive after the house sells, and all fee’s have been paid.

To get more information about selling your house please don’t hesitate to reach out. We would be delighted to discuss it further!

Seller’s Guide. This guide covers what you can expect during the selling transaction and how I help you throughout the entire process!

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THE SARASOTA NATIVE GROUP

941.822.1519

[email protected]

2000 Webber St.
Sarasota, FL 34239