WHAT DOES
IT COST
TO SELL?

Cost Breakdown

These costs will be automatically deducted from the proceeds of your sale before it is wired to your bank account (If applicable).

1. Title company fees

   • Every Bank requires there to be a title company involved in the sale of a home. A title company in a third party entity that is overseen by an attorney to make sure the home being sold has a clean title. They also handle all the document signing as title agents are notary publics. The title company also handles the transfer of funds between the buyer, lender and seller. If the buyer is purchasing a home in cash, typically the seller and the buyer need to use the same title company. Title company fees compensate them for all the work they do. A Seller title insurance policy is issued at closing to ensure that if any title issues arise after closing the attorney fees to resolve it are covered as part of the insurance. Ask your title company for a quote. Title company fees are usually about 1% of the sales price.​

2. Property tax prorations

   • County property taxes are assessed once yearly and are billed to your mortgage escrow account. When you sell a home you will pay the buyer a credit for the amount of months you lived in the home x the monthly tax rate.​

3. HOA transfer fees

   • If you live in an HOA there are transfer fees associated with selling the home. Usually a transfer fee is around 0.5% of the sales price. Ranges from a few hundred to a few thousand. Contact your HOA for more information.​

4. Buyer loan closing costs

   • In a standard market the buyer agent typically tries to negotiate the seller to help cover a portion of the buyer's out of pocket loan closing costs to make the loan more affordable or to "buy down" the interest rate.​

   • The way this is usually structured is as follows

     • Sale price of home is $300,000

     • Buyer wants to give a full price offer but needs closing costs of $6000

     • Buyer offers $306,000 with $6,000 in seller paid closing costs.

     • Seller nets the same but it allows the buyer to essentially wrap thee closing costs into the loan.

     • If the market is slow the buyer may offer less and ask for closings costs as well.

5. Mortgage outstanding balance

   • Principle balance left of your mortgage + payoff fees (~a few hundred)​

6. Real estate commissions

   • 6% of the sales price is standard. 3% paid to the buyer agent, 3% to the realtor helping you sell. ​

7. Attorney fees

   • Some states require an attorney to write and review all contracts. If you live in a state that requires this you will also have to pay attorney fees.​ $150-$350 an hour for usually around $500-$1500 of total cost.