Selling your home is a good sign that you are progressing in your life. You are moving up to something bigger and better. But you must be a little cautious that you might end up paying some of your own money to close the deal. It can be astonished to some owners who are new to such practices, but yes there is a silver lining, you can usually reduce such out of pocket expenses by carefully setting up your home sale.
Below are ways through which you can cut your expenses when you are selling your home:
A real estate agent takes a cut of the sales price in exchange for the listing or the selling of your home. The fee can be negotiable, but most of the time it is 6 percent of the sales price. When your name gets listed in the real estate brokerage, then you can agree to pay this fee. If your home is getting sold soon after the listing contract expires, then you might still owe the brokerage a percentage of the sales price. So it is better that you read the listing contract terms carefully 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 percent of the sales price and the lender closing fee which can run up to $1000 or more. The appraisal fees can add another $300 – $500 and the survey costs can be as much as $500. Asking 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 offer no closing costs services.
Home Repair Costs
It enables for the sale of homes which are less than a few years old. Homes which are of few years old might need repairs on the maintenance to pass the lender’s inspection. If you are aware of any of the issues, then it is better that you fix them before you list your house. It is the simplest and the most efficient way to avoid problems. If such issues show up during the inspection, such as active termite infestation or any water damage, then you might have to pay for the damage before the sale can close. The bank can refuse to finance the house if they discover any undisclosed problems. A normal bank ordered home repair cost includes repainting, replacing old appliances, repairing the leaks on the roof, termite treatment, the addition of railings to steps and stairs and also the installation of storm windows.
Based on the closure of sales, your country treasurer will prorate your 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.