When you sell your home, you incur all kinds of expenses. Most of these expenses are not paid out-of-pocket, but they are deducted from the sales price.
To find out how much you will actually net at closing you’ll need a Net Sheet.
Why Realtor Commissions are Less Than Half of Closing Costs
Many homeowners believe that real estate commissions are the only cost they’ll incur when they list their property. I can tell you that my fee is less than a third of the total closing expenses.
I charge 3% of the sales price as the listing agent. I only get paid when the home sells. This fee covers the marketing of your property, professional photos and videos, postcards, online advertising, open houses, contract negotiations, remedy negotiations, and much more.
The selling agent also gets 3% as a success fee for bringing a buyer.
Now let’s have a closer look at other fees and how I can help you reduce some of them.
Loan & Lien Payoffs
The largest deduction from the contract price is probably the principal of your home loan. When you transfer title to the new owner, your current mortgage and any other liens need to be paid off.
The title company will request the payoff from your lender. They will also perform a title search to ensure that no other liens cloud the title.
In Central Ohio the seller pays for most title related fees. The title company collects and disburses all funds at closing. They create the closing documents and insure the title to the property.
Title Company fees vary. I compare them on a regular basis and rank title firms based on their fees. This will guarantee that you pay less at closing. It will possibly save you more than $1,000 in title fees.
In addition, I will help you lower title insurance premium by requesting a re-issue rate, if applicable. This will reduce your title insurance premium by 30%.
It has become common practice for sellers to pay for a home warranty for the buyer. Home warranties run between $600 and $1,000. In today’s hot seller’s market, you may not have to offer a home warranty to attract a buyer.
That’s another $600 to $1,000 you’ll save.
The county auditor collects property taxes in arrears. This means the property tax bill due on January 20, 2019 covers the taxes for the first half of 2018.
That’s why sellers give the buyer a credit for the time when they lived in the house.
Typically, you will credit the buyer between 6 and 12 months’ worth of property taxes. For the average Columbus house this may cost you $5,000 or more.
Government and Transfer Fees
The seller usually pays for transfer taxes and the cost to record the deed. These fees are usually small.
Here’s a sample net sheet that highlights the fees I negotiate for my clients. Click on the picture you see a full sample net sheet showing 3 different sales prices and the difference in your net at closing.
Call or text Susanne at (614) 975-9650 and find out how much you would net, if you’d sell your home this fall.
Susanne Novak has been a Realtor since 2007. She is the broker and owner of RE/MAX 24/7 in the Dublin Historic District. Susanne typically helps 50-60 families each year with their real estate needs. She's your trusted advisor when you search for your dream home, and a skilled negotiator when she lists your property to get top dollar when you sell.