Many people talk of hidden costs for home buyers, but seldom talked about are costs for those who are selling their homes.
These costs can be as high as six to ten percent of your home’s purchase price. They include any fees, taxes, or related services that the seller is expected to pay at closing.
There are many, but there are also ways to lower them.
Negotiate with your Real Estate Agent
One of the largest expenses that come with selling a home is having to pay commission fees for agents. You can use a seller closing costs calculator to help determine what these fees might look like.
Sellers are responsible for paying the real estate commissions for both sides of the transaction. They can usually expect to pay a 6% realtors’ commission, which the seller’s agent splits 50/50 with the buyer’s agent.
Some agents may be open to negotiating these fees, particularly on your side as the seller. It never hurts to ask.
Put Your House Up for Sale By Owner
There’s another way to alleviate commission fees by eliminating a realtor on your side altogether. Not hiring a realtor to help sell your home will reduce that side of the fees, but you will still be responsible for paying the buyer agent’s commission.
Shop for Buyers Title Insurance
Title insurance protects the buyer in the event there are any issues with a deed. The title company will have a third-party company do a title search to look for any issues before closing.
You may be able to save money by asking for the title date to be re-issued, and by shopping around to get the best deal on the insurance.
Compare Attorney Costs
It can be nice to have a real estate attorney to help navigate complicated deals and protect your interests. Sometimes, one more be required by your state, so be sure to double-check.
If you do need an attorney, shop around for one with the best price in addition to a stellar reputation.
Don’t Pay Closing Costs for the Buyer
Often buyers negotiate to have sellers cover closing costs when they submit an offer. Know that, as a seller, you can refuse this, especially if you have other better offers from buyers on the table.
When considering whether or not to pay these costs, consider a buyer’s mortgage qualifications, what contingencies look like, and how fast the closing date is. If these are all favorable from the buyer, you may want to consider paying closing costs to get the sale done. Otherwise, you can refuse to.
Raise the Purchase Price
If, however, you do decide you are ok with paying closing costs, consider raising the purchase price of the house.
Add the amount of closing costs you’d be paying for the buyer to your purchase price so that, in the end, it evens out for you