We all have to love the selling your home part, considering the load of money you stand to gain but beware of the cost of selling a home.
Wonder the cost of selling a home?
After taking some time to read more about it, my guest comes down to how you plan to handle it.
How Much Is The Cost Of Selling A Home?
The cost of selling a home for the homebuyer can be quite substantial, usually between 2% – %5 of the sales price of the house. Depending on the clause of the terms set forth, the seller can expect to pay closing costs also.
In most cases, the buyer and seller will split a fee when depositing money into escrow. Depending on the case, you may incur a prorated amount of your property taxes.
When Do Closing Cost to Seller Apply?
Keep in mind some mortgage loan types are amendable to the seller paying the cost of closing. Most sellers disagree when they see other homes in the area are selling fast. They believe their home holds value. If this is a buyers market, which is more relaxed, then a seller would be open to leaning in that direction.
Having a conversation with an experienced investor could help get the best deal on your behalf. Most investors will cover the closing cost, setting the most amount of money in your wallet.
Title companies and Closing Attorneys charge around $450 – $750 to transfer taxes into the name of the new homeowner. In most cases, the transfer fee is a percentage of the sales price, the more expensive the home, the greater the expense will be
I recommend going with a real estate attorney to handle any real estate transactions. Attorney fees can get pricy, from a few hundred to a few thousand.
Title insurance protects the buyer in case of a lien or other issues with the title of the home. The lender’s insurance is paid for by the buyer. The cost of title insurance can be around a whopping $500 to $1000.
How can we forget about Uncle Sam? If you are like many few who sold their home for more than what you paid, that is called a capital gain. I suggest reporting it on your federal tax return.
In case this is you, there is reason to feel a sigh of relief. Most homeowners are eligible to exclude up to $250,000 of profit of their primary home from tax, has long used the tax break on another home sale within the last two years($500,000 for married couples filing jointly). This form of credit applies if it has been your primary residence for at least two out of the previous 5-years.
If you sell your house, do not be alert. You should be aware of your property taxes, which are dependant on if they are escrowing into their mortgage. However, usually, property taxes are paid in advance. Depending on the route you are taking, you can expect to pay a prorated share of property taxes up to the closing date, with the money placed in escrow.