selling our house

[lisalulu]

We're planning on putting our house on the market this summer and we're trying to plan ahead on some of the costs. Other than the commission for the agent, what other costs are involved? Is there a listing fee or is that included in the commission typically?

TIA!

[Herausgeber]

That is included with the commission.

The other expenses you may run into are costs of repairs (repainting, cleaning, etc), and paying the closing costs of your buyer, depending on how your market looks right now. Taxes might be do if you made a really big profit.

We're selling, too. I dread moving with a baby.

[jazzharmony]

Originally Posted by lisalulu

We're planning on putting our house on the market this summer and we're trying to plan ahead on some of the costs. Other than the commission for the agent, what other costs are involved? Is there a listing fee or is that included in the commission typically?

TIA!

If you use a traditional RE agent, everything is included in the (enormous) commission. You also have the option of using a flat fee agent for $400 - $1,000 They will list your home and perform some other services. You can also sell it yourself and keep your hard earned money. Whatever you do, make sure you hire a good RE attorney.

[kijip]

Costs vary by state but if you use a realtor, generally 6% of the selling price goes to them (3% of the listing agent and 3% for the selling agent). Then you can figure 3% for various state taxes and costs. So 9% total. None of this is usually paid upfront, it most often is deducted form the selling price.

We just sold a house that we inherited. The realtor got $60,000 more for the home than we had thought it was worth. I really reccomend using a realtor to get top dollar and keep your headaches to a minimum. I also sugest hiring one that primarily works as a listing agent and who will represent your interests the whole way through rather than someone who is going to try and be the buyer's agent too.

[jazzharmony]

Originally Posted by kijip

We just sold a house that we inherited. The realtor got $60,000 more for the home than we had thought it was worth. I really reccomend using a realtor to get top dollar and keep your headaches to a minimum. I also sugest hiring one that primarily works as a listing agent and who will represent your interests the whole way through rather than someone who is going to try and be the buyer's agent too.

Not to be contrary but many realtors UNDERprice a house for quick sale with little effort (on their part) - easy money. I have first hand experience with houses being under priced and over priced - both having crappy results for the seller. Realtors work for themselves, plain and simple. About the headaches, I have had the fewest headaches when I stay far away from realtors

[lisalulu]

Originally Posted by kijip

Costs vary by state but if you use a realtor, generally 6% of the selling price goes to them (3% of the listing agent and 3% for the selling agent). Then you can figure 3% for various state taxes and costs. So 9% total. None of this is usually paid upfront, it most often is deducted form the selling price.

What type of state tax is it-just want to check on what it is in my state?

[kijip]

Originally Posted by jazzharmony

Not to be contrary but many realtors UNDERprice a house for quick sale with little effort (on their part) - easy money. I have first hand experience with houses being under priced and over priced - both having crappy results for the seller. Realtors work for themselves, plain and simple. About the headaches, I have had the fewest headaches when I stay far away from realtors

On average homes that are FSBO take longer to sell, another factor to consider when deciding to use a realtor or not. The paperwork involved and the work to actually find a buyer is my idea of a royal headache so each person will have their own conclusion on what is easier or harder for them. It varies by state too- each state is different on how difficult it is to sell a home. The realtor can't accept any offer that the seller does not accept, which should protect from underpricing (so long as you know what your home is worth) for a fast commission for the realtor. Overall, the sellers I have talked to in my state are happier with a realtor. In fact, I know several people that tried to FSBO and ended up getting a realtor after not being able to sell on their own easily. In our case we recieved $60,000 more than anticipated and the house sold in less than 4 months in a sloooowwww rural market so we were pleased as punch. A *good* realtor is simply going to know more about the local market than the average seller. In our case a realtor may have been more beneficial because we were selling a house that is 250 miles from where we live. All we know about the location is that we dislike it . I don't hire a lay person to do my plumbing or accounting...for me it is the same with a realtor. Of course, everyone is going to have a different experience. For us it was much more frugal in the end to use a realtor. That said, there are many baaadddd realtors out there. If you use one, take the time to find one that comes highly reccomended by someone that you trust.

[kijip]

Originally Posted by lisalulu

What type of state tax is it-just want to check on what it is in my state?

I don't have the paperwork here but it was an excise tax of some variety particular to our state. It was not huge.

In all, we paid the buyer's closing costs (we wanted a quick sale, estate house in a rural area and we wanted it GONE as soon as possible), the 6% realtor's fee, the title insurance and the tax.

As for federal taxes, if you have lived there longer than 2 years it is unlikely that you owe any capital gains. Our situation was different since it was an estate sale but we do not owe any income or capital gains tax from the sale since it is under the estate tax limit.

[jazzharmony]

Originally Posted by kijip

On average homes that are FSBO take longer to sell, another factor to consider when deciding to use a realtor or not. The realtor can't accept any offer that the seller does not accept, which should protect from underpricing (so long as you know what your home is worth) for a fast commission for the realtor.

Glad it worked out for you.

NAR always spins info in their favor. For instance, their ads stating that realtors get higher prices and quicker sales. They have to protect their interests because the writing is on the wall and consumers are reading it.

And on getting a lower price. The realtor is the hired "expert" and they are the one who tells you what your home is worth (that is part of the reason they get the big bucks) In fact, many realtors refuse to work with sellers who won't price the home at what the realtor decides on.

Sorry OP. to derail your thread. I realize you didn't ask about going FSBO.

[annethcz]

It depends on the area, but there are usually closing costs for the seller as well as the buyer. We're selling our house, and the realtors we met with all gave us estimated closing costs (cost of expressing payment to the mortgage company, state and local taxes, etc. etc.). In our case, we're expecting to pay around $1,000 in closing costs, in addition to realtor fees, when we complete the sale of our home.

As sellers, we are also paying some of the buyer's closing costs, and we've spent a small amount of money to fix some things up around the house. Our buyer is having a home inspection done this week, and we may need to make a few additional repairs after that is done.

[SunRise]

My house just sold - closing on May 1. These were areas where I have or may have had costs:

Lawyer/survey/title search costs. For me, the amount is around 600 - 900. Lawyer 150 - 200; Survey is 200 dollars (I saved the survey when I bought the place, which allowed the surveyors to work off of it which cut the cost in half); title search...All this is arranged by the lawyer and paid to him out of the selling price at closing (if you profitted).

The commission - 7% is the norm in CNY.

Post - Inspection - the buyers may come back at you to negotiate $$ for fixes that were not put in the disclosure / unknown things. You may then turn down the offer or you may have to spend money or pay a credit at closing.

After offer is accepted their mortgage/banker sends out an assessor to assess the place to make sure it is worth the mortgage. This assessor may come back at you to fix some things before they will accept the mortgage.
In the contract I had with the offer - there was a 300 dollar amount we would split if there were any problems from the assessment. If the costs were going to be higher then the deal was up for renegotiation. (If the buyers are getting a conventional loan with 10% or more down, the assessor is more lenient as the mortage is in the hands of the buyer. If the mortgage is a fha or government sponsored type deal, then the assessor is much more picky as the bank is responsible for the loan.) - When I bought the assessment led to a roof inspection, a foundation inspection, a painted porch and a fixed window pain costing about 600 dollars); When I sold (to buyers approved for conventional loan) we had no assessment issues.

Money coming back in: Once you close...besides your profit, your mortgage holder/bank will mail the money that was left over in your escrow account; The tax people will reimburse your quarterly tax payment that you made ... if you close in the middle of a quarter you will be refunded.; and you should get some of your home insurance money back...unless you are transferring that to a new property.

[cristeen]

A lot depends on your state (escrow state or attorney state, as well as tax laws), and county (buyer paid fees or seller paid fees).

It looks like Washington is an escrow state.

The fees involved may include:
City Transfer Tax
County Transfer Tax
Escrow Fee
Title Insurance Fee (2)
Doc Prep Fee
Notary Fee
Any repairs being credited
Any holdbacks being done

But, who pays the above fees depends on the county, usually. In some areas, the taxes are buyer's responsibility, in others the seller's. Around here, the buyer pays Escrow, and Title fees, but in other areas the seller does. Doc Prep and Notary usually get charged to both buyer and seller. Repairs and Holdbacks would be based on the sales contract. Pretty much all of these fees will be based on the sales price.

Here in CA, there's also taxation, based on meeting certain criteria (don't know if WA state does this). Then there's always Federal tax (Capital Gains) as well. These are paid by the seller.

Definitely ask your realtor if you are in a "Buyer pay" or "seller pay" area, because that also gets written into your contract automatically. You can go against the norm if you want, but it will have to be written into the contract, so be sure to have that conversation with your realtor early.

If you haven't had a recent appraisal, and aren't real sure what your property is worth, it might be worth having it done. It'll cost a couple hundred, but could really make the difference in you knowing what pricing should be like and not relying on your realtor. If you do go that route, however, don't use the appraiser your realtor recommended. Ask around and use someone else, so there's no conflict of interest.

[1growingsprout]

HI, other then fee's dont forget the 'little stuff'
cleaning and supplies
possibly fresh flowers on table for openhouses
daytime activites while open house is going on
any repairs that need to be made prior to listing

minor but extra utility bills during listing time, relators like to have ALL The lights on and the A/C nice and cool to make the buyers comfortable

also the inconveince of having someone call and say 'we are 10 mins away" etc

[stelly]

Originally Posted by jazzharmony

Glad it worked out for you.

NAR always spins info in their favor. For instance, their ads stating that realtors get higher prices and quicker sales. They have to protect their interests because the writing is on the wall and consumers are reading it.

And on getting a lower price. The realtor is the hired "expert" and they are the one who tells you what your home is worth (that is part of the reason they get the big bucks) In fact, many realtors refuse to work with sellers who won't price the home at what the realtor decides on.

Sorry OP. to derail your thread. I realize you didn't ask about going FSBO.

Actually, a good Realtor will prove where their pricing strategy is coming from by showing sold information for similar homes in the neighborhood. The "price-it-low-sell-it-fast" method is used by some agents, but they are usually quite honest about that. It is used a lot by Canadian agents (and UK ones), as witnessed in the HGTV show "Buy Me".

Nobody has to use a real estate agent. I don't compare the job a Realtor does to that of a doctor or dentist like some people do, but it's like getting a doula for a birth - you can, of course, do it yourself, but the experience may be easier, calmer and have a more pleasant outcome if you use the services of a skilled person....

________

Typically a seller will pay anywhere from 3-7% commission to sell their home - depending on the brokerage/service they use, and where in the country they are (regional commission differences are staggering!). In most (if not all) states commissions are 100% negotiable, although often a brokerage firm will set lower limits on what their agents can take.

Then you need to factor in expenses for repairs/updates to the home. Any staging items that may help. Some lower commission agents may ask the seller to contribute to costs to host a broker's luncheon. Others may ask a seller to pay towards advertising. A full service agency (round here that would be about 5% or 6%) should not ask for those things.

In this area it is commonplace to retain an attorney to handle the transaction, call a couple for a price quote. You may also run into expenses for repairs stemming from the home inspection, radon mitigation, lead paint inspection, etc. etc. - depending on your area and the age of your home.

Finally you've got moving expenses and closing expenses - taxes and fees really add up!

It can be very expensive once you take it all into consideration - the emotional upheaval of selling and having your home open to strangers is difficult, and the inconvenience of having to clear out every time you have a showing or open house... A good Realtor would be able to run through all of this with you and help you determine if this really is going to be a financially viable option for you.

Good luck!

Disclaimer: in case you didn't realize I have a current, active Real Estate license

[Amys1st]

Dont forget you're selling a house not your home. Sounds easy enough? Wrong! We removed about 20% of its contents and about 80% of the playroom to appear spacious etc. Also keeping the house "show ready" is a pain in itself and sometimes an absolute nightmare (ok let me tell you how I really feel ).

We are paying a 5% fee. Its standard in our area, but the house I am selling is 300K and its pretty modest. I do know people who have negioted down. The listing agent by standards set in this area, are required to pay 2.5% of whatever is the selling price. If they want to cut their cut, thats their business. I would be leary of any agent not wanting or accepting a cut. They wont do a fab job marketing your house, selling it etc. It you want you house to sit for months, price it in a greedy way. If you want it to sell, price it to sell. Again be leery of any agent who says you can get a higher price than any other agent is saying.

[oats'nhoney]

We sold our 3 bedroom condo last October all by ourselves, it can be done AND it can save you thousands.. you just have to be focused & determined. I whined to my DH for weeks to use a realtor but he was firm with selling it on our own. I am so glad we sold it ourselves.. we saved a bunch of money that would've went to commission. I would highly recommend trying to do it yourself for a few months.