The Costs of Selling a Home
While it is well known that buying a home can be a large expense, sellers need to be aware of the costs of selling their home as well. One of the largest expenses in selling a home is the real estate agent’s commission. Typically, the seller pays 6% commission on the sales price of the home- 3% to the selling agent and 3% to the buying agent. Although this seems like a large expense, a REALTOR knowledge and ability to guide a seller through the process, from pricing to closing, can be invaluable.
In addition to the commission, sellers also pay closing costs. Depending on the sales contract, sellers will pay for a home warranty, a survey, an HOA transfer fee, a title policy and title fees, attorney fees, arrears property taxes, and possibly even some of the buyers closing costs. This may seem like it will add up to a small fortune, but with the guidance of an experienced REALTOR, sellers should expect to negotiate a few of those fees, resulting in fewer closing costs. Ultimately, depending on the sales price of the home, the seller should expect to pay between 7%-10% of the sales price on closing fees.