Wednesday, June 7, 2017

How Much Sellers Pay in Closing Costs?


Making money off your home is what you are really thinking about when it comes to selling your home.  The chances are good that you’ve mentally spent much of the proceeds already on a new home you are buying or maybe even on a nice vacation.  But it’s time to slow down a bit.  While you are selling a home, which can bring in some nice profits not every dollar goes into your pocket. 

Real estate agent commission explained
On an average, home sellers pay their listing agent a commission amounting to about 6% of the price of their home.  That means some of your profit will go towards the expense of selling your home.  Real estate agents split the commission between the buyer’s agent and themselves.  The commission fee helps pay to market your home including signage, photographs, listing your home on multiple sites, and open house expenses. 

How much sellers pay in closing costs

Sellers do have to pay some closing costs when it comes to selling your home.  You can expect to spend an additional 1% of your homes price on closing costs, depending on the price of the home.  Closing costs tent to be fixed and include transfer taxes, escrow expenses and notary fees.  You will also have to pay any outstanding property taxes, a prorated share of the water and sewage bills and the remainder of your mortgage.

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