If you're thinking about selling your home, you probably know that there are costs involved in the process. While costs can most certainly vary, you will most likely want or need to hire professionals to help you sell. Below we will explore some of those potential costs you may encounter.
Real Estate Agent Commission: A typical transaction involves a 6% commission fee (on the sale price of the home), 3% to be payed to the listing agent and 3% to the buyer's agent. While this may seem steep, consider the following:
Real estate agents typically do not earn a salary. They are paid strictly on commission. Out of there commission they must pay a brokerage fee, marketing and advertising costs, cost to list on the multiple listing services (MLS), photography and more.
Your agent will cover the costs for professional photography, for sale sign, advertising and marketing.
Your agent will handle the showings, manage phone calls from other agents and prospective buyers, host an open house, paperwork, and represent you in the negotiations.
There is legal protection when working with a licensed real estate agent.
Negotiating and market experience.
Broader exposure and more buyers by posting your home on the MLS.
Access to networks of agents to market the home to other areas and before the home even hits the open market.
Seller Closing Costs: Although buyers tend to have more closing costs than sellers, you can expect to pay about an additional 2% of your home's sales price. Typical closing costs include transfer taxes, escrow expenses, and notary fees. You’ll also be responsible to pay at closing any outstanding property taxes, a prorated share of the water and sewage bills, and the remainder of your mortgage, if applicable.