Once you’ve decided to sell your home you probably will want to know how much selling will cost you and what you can expect to walk away with.
First thing you should do is find out how much you owe on the home, unless your home is paid for outright this includes your first mortgage and second mortgage, if you have either of these, and any HELOC’s you might have.
Next, estimate your homes current market value. If you’ve been watching home sales in your local market the last month or two you might have an idea what your home might be worth. You can use your estimate for a quick calculation, but your best bet is to ask you real estate agent to tour your home and prepare a CMA based on their assessment of your home and their knowledge of the local market. Your agent should also be able to give you some recommendations of things you could do to improve the value and the appeal of your home to potential buyers.
Now let’s estimate the expenses of selling your home.
A. Real Estate Commissions – There’s a long standing misconception that there is a standard or typical percentage of what real estate commissions are. That is not the case. There is no standard or set % for real estate commissions. Every agent or team of agents is essentially an independent contractor and as such they all have their own way of doing business. That means they will have different strategies to selling a clients home and use different services to get the job done.
Open houses are not intended to sell the house you’re holding open. It’s actually uncommon for a the buyer to walk in from an open house sign and be the one who ends up buying that home. The number one reason agents hold open houses is to market themselves and meet their future client when they walk in looking at your home.
Now let’s look at closing costs
Closing expenses very from state to state, county to county and even city to city.
In my local area it’s common for buyers’ to pay for title and escrow fees, transfer tax is paid by the seller, there is no city transfer tax in my city but some do have this tax, and there’s also a builder report required and is usually paid for by the seller…. but keep in mind this is what is typical in my city ,but it is all negotiable so make sure you look at any offers you get to see who is paying for what.
If your home is in a Home owners association you should anticipate paying the management company a disclosure document fee. This is usually paid to the management ahead of time as part of your disclosure packet, some may allow you to charge it to your escrow account.
Finally consider inspections. If you have inspections done before you list your home for sale the cost will fall on you as the seller. In some markets buyers typically pay for and have inspections done once an offer is accepted. This is going to depend on what’s common in your local area so ask you real estate agent for guidance.
If you’re looking to sell you home in the San Francisco Bay Area let me know! I’m happy to do a free CMA and estimation for your specific home. If you need an agent in your local area, send me an email with your location and I’ll recommend an agent to you.