You collect money from selling your house, but did you know the seller has some expenses so they need pay off as well? Read to learn more about what the expenses are, how much each cost, and more about how costs are incorporated into the home’s price.
What Is The Average Price Of A House?
Before getting into anything regarding what sellers have to pay, it is important to know the average cost of a home to help with calculations. With this, The Zebra affirms that the average price of a home in the United States is $348,000. Ever since COVID, the prices of homes have been experiencing a twenty nine percent increase.
When You Sell A House, Do You Get All The Money At Once?
With the price in mind, you must consider how long it will take to receive your payment. According to Clever, after you sell your home, your payment is given after closing within twenty-four hours or less. Getting the money into your banking account is a different story. This all depends on the state you live in since in some states, a waiting period after closing is required for receiving approval from the lender first who then sends the money to the closing agent.
What Expenses Do Sellers Have To Pay?
Now onto the actual seller’s expenses, the mainly asked question! Even though the seller makes the money with someone purchasing their house, they are still required to pay certain expenses as well in accordance with the law and in order to have a successful transaction.
Most of the expenses that are going to be listed are not by choice, but others are completely up to you.
According to Bob Vila, the following expenses are personal preference…
- Home appraisal
- Hiring a real estate agent
- A land surveyor (if you do not have a real estate agent)
- Warranty for the buyer as an incentive
Used to change the ownership name of the home.
Protects lenders and buyers from any potential damages.
A tax given to any individual who owns a piece of property.
Homeowners association or HOA
Companies who oversee a community of homes and can do certain repairs as needed.
Typically split 50/50 amongst the buyer and the seller. It pays the agent who takes care of the funds during a sale.
How Much Are The Closing Costs?
After reading everything regarding what makes up the closing costs in the previous section, you may be wondering how much it all adds up to since it is one of the most important/costly expenses in this entire process. Zillow says that typically the closing costs for the seller specifically is roughly between eight to ten percent of the home’s sales price. To figure this out, take the cost you marketed your home for and multiply it by each percentage to get a rough estimate of the total that must be paid in closing costs.
What Do Most Realtors Charge To Sell Your House?
Bank Rate states that hiring a real estate agent is the most costly expense (within the closing costs) in this entire process, so we decided to dedicate a section to talk more about realtors for a better idea.
The average real estate agent charges roughly around five to six percent of the home’s sales price. The reason it is that high is because the cost is split amongst the seller’s real estate agent and the buyer’s real estate agent. However, you are able to negotiate this cost within reasonable pricing and accommodations. A real estate agent is more likely to lower the price if the house is able to sell quickly, the market is good, or if the price of the house is fairly higher than average.
Although it is quite expensive, hiring a real estate agent can be useful as they guide you through every aspect of the house selling process and through their expertise and research can give you the answers you need to maintain success in the housing market.
Sell My House For Cash
After learning more about the costs involved in selling your home, it’s time to make a decision. If you’re concerned about the financial burden of the expenses, we have a solution that can minimize fees – selling your home for cash. Consider reaching out to KC Home Buyer Group, a reputable company specializing in buying homes for cash. This option can help alleviate stress and streamline the process.
You can make this happen with four easy steps:
- Fill out our form or call us about your property at 816-892-2132.
- We will contact you to set up an appointment if it meets our buying criteria.
- We will present you with a fair-priced, written, no-obligation offer.
- We will close at a local title company, and you will receive the cash in as few as seven days!
We hope you have learned more about surviving the house-selling process and wish you luck in the home selling process!