Understanding Home Selling Costs
Do you know your Home Selling Costs?
Are you considering upgrading, downsizing or relocating? If you’re a homeowner, that means selling your current home and investing those proceeds into your next home. But how much do you expect to get and how much will you actually get from your home’s sale?
Did you know that your home’s worth is only part of the equation?
You’ll want to figure out exactly what the net amount to you is after all selling costs.
There are a lot of variables that determine that number and here is where a competent Realtor can help you.
These are some of the costs you should be aware of:
• Owner’s title insurance premium
• One-half of the escrow fee
• HOA fees (including assessments, transfer fees, etc)
• Real estate sales commissions paid to Seller and Buyer agents.
• Home warranty fee (negotiated)
• Any/all of Buyer’s closing costs agreed to be paid by the Seller
• Property taxes prorated to the date of recording
• One-half of the recording fee
• Courier fee, if applicable
• Loan payoff to your lender
• Other misc fees from your title company (notary, courier, etc.)
In Arizona the seller usually pays the real estate agent commissions for both the buyer’s agent and the agent that will bring the buyer. The average total commission is about 6% of the purchase price. A portion (usually half) goes to the buyers agent and the rest goes to the seller’s agent.
All commissions are negotiable but if you negotiate a lower commission with your agent, buyer’s agents may be less excited about showing your house and your agent may not be as aggressive at marketing your home. Think about it this way: When I shop for a doctor am I looking for the cheapest or the most competent?
So how much will you pay to sell your house in Arizona? Well there are a lot of nice Closing Cost Calculators on the internet but, in my opinion, you should ask the Realtor you hire to give you an estimate. I say estimate because of those variables I mentioned before.
Did you know that your cost will vary depending on the day
your home sale closes (the day it is recorded at the County Recorder’s Office?
Below is a closing statement for one of our actual sales. This is similar to what you will see at the closing table. Your Realtor will order a preliminary statement for you from a title company he/she works with.
Again, your Realtor should be able to recommend a good title company based on his/her experience. Some are really good and some…well, not so much.
This example is not part of a Home Owners Association so there are no HOA costs.
As you can see, there is a lot that goes into figuring out how much money you will actually get when the sale is complete. This is a small part of how a competent, experienced Realtor earns that commission.
Got questions? Let’s have a conversation so we can address your concerns and help simplify the home selling process.
Text or call me at (602) 363- 0351. Coffee’s on me!