Here are six major costs that factor into your net proceeds as a seller.
If you’re thinking about selling your home, you might wonder how much money you keep once everything is said and done. No two closings are the same, but today I want to give you a general estimate and run through the costs of selling. Here are a few of the biggest considerations:
1. Your mortgage. You can’t sell your home without satisfying your mortgage at closing. Your lender might charge you early termination fees, so you’ll want to figure out if that applies to you. If you don’t have a mortgage, you don’t have to worry about this.
2. Your agent. If you’re hiring a licensed agent to help sell your home, you’ll have to pay their commission. The exact percentage is determined at your listing appointment.
3. Liens against your property. If there are any liens on your property, they must be paid at closing before you transfer the title to the buyer. A title company will run a search on your home to determine if there are any liens.
4. Ancillary fees. Certain townships may require a use and occupancy agreement or resale certification to transfer the property, and both of those would come with fees. You’ll also need to finalize any utility fees like sewer and electric.
5. Real estate taxes. If you owe any of these taxes, they would come out of your proceeds at closing. If you have a mortgage, your taxes might already be escrowed, so you may have to offer a credit.
6. Repairs. If you negotiated any repairs with the buyer, those could be charged as a credit at closing.
A lot goes into calculating your net proceeds. If you’re interested in learning more about your specific situation or have any questions, call me at (215) 680-4652. I’d love to hear from you.