If you are planning to sell your home, it is important to consider the closing costs. Closing costs are the fees paid at the closing of a real estate transaction when the title of the property is transferred to the buyer.

When selling your home, the real question will be how much will it really cost to sell? Between the fees for attorneys, real estate agents, and taxes, you can be looking at closing costs of between 5-10% of the price of your home.

What will be your net profit? While it differs from state to state, your lender or real estate agent should be able to help you predict what those costs will be. You can use a Seller’s Estimated Net Proceeds worksheet to help itemize what the specific costs will be.

The following are some of the typical expenses you can plan to pay at closing when you sell your house.

Commission for Real Estate Agents

This is the price you will pay to the agents who are helping to sell and buy your home. On average, a real estate agent will charge 6 percent – half going to the seller agent’s brokerage, and the other half going to the buyer agent’s brokerage. If you are working with an agent who is selling your home, they might give you a break and only charge 5 percent if you use them to buy your next home.

Loan Payoff Fee

Some lenders charge you an administration fee to pay off your current loan. Make sure to ask your lender to see what fees they charge.

Lien Releases

If you owe money for property tax, a contractor, or the court, a lien may have been placed on your property. This is important to make note of as you are required to pay these fees before you can close on your home.

Attorney Fees

An attorney will help with the legal documents and negotiations. Fees usually range from $500 – $600.

State and County Transfer Taxes

Transfer taxes are fees charged by the state or county to transfer the title from one owner to another. For example, Michigan’s transfer tax is currently $3.75 per $500. Oakland County’s transfer tax is $.55 per $500.

Repairs

When you are planning to sell your home, your buyer will perform a home inspection. Making sure to plan for repairs will be helpful. Typically, requests should be related to health or safety concerns and not cosmetic.

Home Warranty

Buyers might request that the seller pay for a home warranty. This is a protection plan for the buyer’s first year in the home. The cost of a home warranty may be around $500.

Notary Fees

Fees are charged by a notary to verify your identity and make sure the documents are handled properly.

Escrow Fee

The escrow company is the middle man between you and the buyer making sure that the money is handled properly. Escrow agents receive money from the lender, pay off your mortgage and closing costs, collect deposits, and give the proceeds to the lender. This might be something you can split with your buyer.

Water and Sewer Bills

Final water and sewer bills, if applicable, are paid for at closing. If final bills are not present at closing, money will be escrowed until final invoices are paid.

Summary

Selling a home does have costs, and while all the fees can feel frustrating, having an experienced real estate agent by your side to help you work through this process will make a huge difference. 

When you chose the Jamey Kramer Real Estate Group, we make it our priority to help you get the best price for your home and help you every step of the way while selling your home. You can rest assured you are not alone. Please give our office a call today.

248-348-7200