What are the costs to sell your home?
This is a breakdown of the most common Seller expenses. This is not an exhaustive or 100% accurate list, but should help you get a general idea of your expenses if you sell your home. So as you prepare to list your home, be sure to keep these expenses in mind to help you determine the list price.
Commission: There is no law that requires a set commission rate, therefore the rate is set by the Listing Brokerage or Listing Agent. Also please note, it is common in our market for this commission to also cover the Buyer’s Agent’s side. So the commission will likely be split between both Agents involved, as well as both Brokerages the Agents work for.
- Example: If the commission is 6% and the home sold for $170,000, the commission paid would equal $10,200 (170,000 x .06 = 10,200)
Deed Prep Fee: This is a fee charged by the Closing Attorney to prepare the deed. This fee ranges with each Attorney but usually is between $250-500.
Deed Stamps: This is a tax you’re charged as the Seller. It’s roughly 3.7 times every thousand.
- Example: If a house sold for 170,000, it would be roughly: 3.7 x 170 = $629 (again, this is a rough estimate)
Mortgage Payoff: If you have a mortgage on your home, depending on the terms of that mortgage, you likely will have to pay off the remaining balance when your home is sold. You will need to contact your Lender to determine this remaining balance. Please note, the Closing Attorney will help confirm the payoff amount with your Lender and will handle distributing those funds to your Lender.
Property Taxes: Property taxes are paid at the end
of the year, which means the Buyer will be receiving the bill.
Therefore, you will reimburse the Buyer at closing for the time you
owned the home during the calendar year. If you are unsure what your
taxes will be this year your Agent can help get you a ballpark figure.
Also, keep in mind, if the property is currently being taxed at the
non-residential rate of 6% and closing is scheduled within the last 4
months of the year, be sure to consult with the Closing Attorney to
determine your options to get the rate reduced to 4%.
Example: If the property taxes for the year are $1,000 and you sold the house on June 30, then you would only be responsible for $500.
Additional Taxes: In some instances, such as if you are not a legal resident of South Carolina, or depending on the profit you make from selling the home, you may be charged additional taxes. We would advise you to speak with an SC Real Estate Attorney or an Accountant familiar with SC law to help determine if you will face any additional taxes.
Misc. prorated items: Sometimes there are other items that will be paid at the end of the year that you must reimburse the Buyer for. For example: HOA fees, trash fees, etc. Likewise, if you have already paid any annual or quarterly fees then the Buyer will reimburse you at closing for the time you did NOT own the house during the calendar year. The Closing Attorney will help handle this.
Misc. / Unknown items: Please keep in mind, it is very common for Buyers to ask Sellers to make repairs, help with Buyer closing costs, and/or purchase a home warranty, etc. These are unknown costs that no one can predict (especially in regards to repairs). Budgeting an additional $5,000 to $8,000 would be wise, but again, we cannot predict these numbers, so it may be less or it may be more.Vanessa and Hart Traylor at www.TeamTraylor.com