All the fees, costs, and commissions you need to pay when selling.
Are you considering selling your home soon? If you are, you’ll likely make a nice profit from your sale. However, you should be aware that there are costs and fees associated with selling your home that you need to be aware of. To make sure you don’t get caught off guard, I’ll give you detailed information on the most common costs you should prepare for before selling.
1. Preparing your home for sale. Show that your home is in great shape. Make cosmetic upgrades like repainting your walls and cleaning your carpets. Consider industrial cleaning services to make sure that everything looks neat before you list your home on the market. Declutter and move things from your living spaces into the closets or garage. A storage unit is also a good idea if you need more space to store your belongings. That said, anything involved with preparing the home is considered a cost.
2. Repairs. Even if your home seems perfect to you, different buyer inspections will likely reveal issues you weren’t aware of. There may be leaks that you didn’t know about. As a seller, you’re not obligated to do repairs beyond ensuring safety, like functioning smoke detectors or following the code, and the sale agreement typically states the home is sold “as-is.” However, if a buyer requests repairs and you decline, they often have the right to back out and get their earnest money back. Therefore, budgeting for repairs is wise, as it can make or break a deal.
3. Title and escrow fees. When we close, in addition to the agent’s commission, you need to pay for some title and escrow fees in Oregon or a title in escrow. These fees are split evenly between the buyer and seller, as the title and escrow companies are neutral third parties. A good rule of thumb is that these fees amount to roughly half a percent of the purchase price. Once we have a final closing date, we’ll get you the exact amount, as all title companies have somewhat standardized fees.
4. Property taxes. These are paid off and are prorated to the closing date. So, if you paid for the whole year and we close before the year ends, you’ll receive credit for the amount you paid. If you haven’t paid in full, you’ll owe taxes up to the closing date. You’ll never have to pay for the house after you sell it; you’ll only be responsible until the closing date. Either way, you’ll either have to pay taxes or get a prorated refund at the closing table.
5. Escrow account refund. If your mortgage payment includes property taxes and you sell, you’ll likely receive a refund from your lender’s escrow account, as it typically has a cushion. You’ll get some money back because you’ve closed your escrow account.
There’s a lot of information about how much you need to prepare for when buying a home that I haven’t covered yet. But if you have questions about fees you might have to pay or anything else, please call (503) 522-0090, or you can also send me an email. I am always willing to help!
