Selling your home is one good sign that you are progressing in your life. You are moving up to something big and better. But you must be a little cautious that you may end up spending some more from your pocket to finalize the deal. It can be astonished to some owners who are new to such practices, but yes there is a silver lining, you can get reduced such sort of expenses by carefully managing your home sale.
Below are ways through which you can cut your expenses when you are selling your home:
Your real estate agent will bag a percentage of the sales price in return for managing the listing and selling processes of your home. The fee can be negotiable, but most of the time it is about 6% of the sales amount. When your name gets listed in the real estate brokerage, then you can go and agree to give this fee. Even if your home is getting sold quickly after the contract expired, still you need to pay a percentage of the sales price to the brokerage. So it is better that you read and understand the contract terms and conditions for the listing cautiously before you sign.
The home buyers may need bank financing to purchase a house. Most of the lenders require a down payment of up to 20 percent of the sales to qualify for a mortgage. Buyers end up facing additional costs which include the insurance and lender closing fee. The insurance is typically around 1% of the sales price and the lender closing fee which can run up to $1000 or more. The addition of appraisal fees will cost around $300 to $500, and then there will be survey costs around $500. Asking process with the sellers to help out is a commonly seen act. A buyer can ask for a seller concession which ranges from half the title of insurance fee to thousands of dollars to get paid while closing the deal. So better you should find out a home buying consultancy who offers no closing costs services.
Home Repair Costs
It enables for the sale of homes which are old and in need of some repairing. Homes which are few years old will require repairs and the maintenance to overcome lender’s inspection. If you are conscious of any of the issues, then it is better that you fix them before you make a move to list your home. It is the easiest and the most efficient way to avoid problems. If such issues show up during the inspection process, like termite infestation or any water damage, then you are required to pay for the repairing of the same before getting the sale closed. The bank can refuse to finance the home if they discover any undisclosed problems. Normally the home repair costs ordered by the bank includes replacing old appliances, repainting, roof leaks repairing, termite treatment, the addition of railings to steps and stairs and also the installation of storm windows.
Based on the closure of sales, the treasurer of your county will prorate the property taxes. This amount gets subtracted from your proceedings. The property taxes are getting paid in arrears, and you will have to owe a portion of the current year’s tax when your home gets sold.