It’s a HOT, HOT Seller’s Market!!
There’s a lot of capital gains to be made from the sale of your home with its newfound equity. Before you list your home, let’s examine the cost that you will incur as a Seller.
Real Estate Agent Commissions are paid to the Agent who sells your home and to the agent representing the buyer who purchases your home. Typically, this cost is 5% of the total cost of the sale price of the home.
Escrow Fees include the cost of the escrow company to process your transaction as well as small fees for courier/messaging & handling, 1099 processing, wire, electronic archiving, and document preparation. Escrow processing fees are calculated at $2.00 per $1,000 of your home’s sale price plus a base fee, typically $250.00. Smaller processing and handling fees are typically about $200 in total.
Title Fees include Owner’s Premium, sub escrow, courier/messenger, wire/express, and county transfer tax. The Owner’s Premium is calculated based on your down payment, loan amount, and total cost of the home. The fees for sub escrow, courier/messenger, and wire/express typically cost about $150 in total. The county transfer tax is paid to the County Recorder to officially record the sale of your home and is calculated at $1.10 per $1,000 of your home’s sale price.
Property Taxes are estimated based on what you have already paid or will owe when escrow closes.
Additional Fees may include fees for a Natural Hazard Report (about $125), Homeowners Warranty (about $550), Transaction Coordinator (about $400), and HOA documents and transfer (fees vary depending on the HOA). Depending on the HOA, sometimes these fees are owed upfront when you open escrow.
If you sell your home for $1 million, expect to pay:
Real Estate Agent Commissions: $50,000
Escrow Fees: $2,450
Title Fees: $2,400
PropertyTaxes & Additional Fees: TBD
Before you list your home, ask your Listing Agent for a Net Sheet so you fully understand how much it will cost to sell your home.