March 13, 2020
3 MINUTE READ
If you are seriously considering selling your home, you likely know just how much you still owe on your mortgage, and you probably also have a good idea of your home’s current market value. Home sellers — especially first time home sellers — can be caught off guard with all of the closing costs they are responsible for. You might be asking: “How much are closing costs when selling a home?”
Unlike buyers, sellers are usually responsible for paying the real estate agent commissions or fees, as well as title insurance and other fees. By the time the transaction is finalized, closing costs for a seller can reach as much as 10 percent of the total sales price.
While it may sound intimidating, closing is simply the phase in the home buying and selling process where money and documents are transferred from one party to another, to officially transfer ownership of the property to the home buyer. In a successful closing, both the buyer and the seller fulfill their responsibilities according to the sales contract.
Most closing costs are the responsibility of the seller and are due at closing when the buyer’s funds are officially available to use as payment and disbursement.
Some closing costs are often the sole responsibility of the seller, including:
Although many of the closings costs are, by default, the responsibility of the seller, keep in mind that anything is negotiable. Especially in a buyer’s market, when properties often sit on the market for longer than usual, anxious sellers are often quick to agree to pay whatever fees are necessary to sell their home as quickly as possible.
However, in a seller’s market, where properties often sell quickly and buyers get into bidding wars, savvy buyers can help set themselves apart by offering to take on some of the closing costs.
In the traditional real estate model, the real estate agents’ commissions are typically the most significant closing cost a seller faces, other than paying off their current mortgage. Most often, the seller pays the commission for both the buyer and the seller’s agent — which can mean a 6 percent hit to your bottom line (usually 3 percent to each agent). And while this may not sound like a lot, when you’re selling a $500,000 home, that would mean you have to pay $30,000 in agent commissions by working with a traditional real estate agent.
This is just one way in which Reali is different. You can sell your home with Reali and save thousands. Reali has many options to list your home. In fact, you can list your home for 1%. To date, our sellers have saved an average of $20,000 when selling their home. Selling your home with us means thousands of dollars that you get to keep in your pocket.
At Reali, we offer honest and transparent real estate service, with experienced local agents, big savings, and zero pressure.