Wednesday, September 28, 2011

Seller's Closing Costs

When a homeowner decides it's time to move, they often talk to several Realtors to find out how much their home is worth.  Agents will then prepare a market analysis, comparing your property to other similar homes in your area that are active, pending and sold within the last six months.

Another part of the equation when calculating how much they will garner from a sale are the closing costs.  Closing costs are roughly equal to about 8-9%  of the sales price in the state of Washington.  So if you sell your home for $500,000, expect to pay out approximately $40,000 to $45,000. Your Realtor should provide a net proceeds sheet along with a market analysis so there are no surprises when you sell your home.

What goes into that 8-9% cost of selling?  Buyers and sellers equally share the escrow fees, Realtor fees are generally 6% of this with half going to the listing agent and half to the selling agent, excise sales taxes must be collected, there is a title policy and document prep fees, as well as recording fees.  The escrow company will prepare a HUD statement and list all the charges so you know exactly what the seller's obligations are.

Should you be considering selling your home, give me a call and I would gladly provide a complimentary comparative market analysis along with a net proceeds sheet.  That way you will know roughly what you can expect to receive from the sale of your home.

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