Closing Costs When Selling Your Home
What Closing Costs Can You Expect When Selling Your Home?
As a seller, knowing what your costs will be to sell your home is crucial. One of the most common mistakes that sellers make when it comes to listing their home is failing to budget appropriately for closing costs. In doing this, sellers are often blindsided to the reality of settlement fees, which can ultimately affect his or her bottom line.
Here's the truth: While buyers are typically responsible for the majority of "fees" associated with a real estate transaction, sellers in Central Oregon should expect to pay between 5-8% of the total sales price in closing costs. On a typical home priced at $400,000, a seller should anticipate allocating roughly $20,000-$30,000 toward closing costs. If you have equity in your home, these fees will be deducted from your proceeds, however, in some cases, a seller may be required to actually bring money to the closing table in order to cover these expenses.
Step #1: Before you decide to list your property, meet with a local real estate expert like myself to discuss the true cost of selling your home. As a licensed Realtor, I'm able to provide you with resources such as net sheets, guides, closing checklists, etc. that will help you to better understand the home selling process, your responsibilities as a seller, and what you can expect to net from the sale of your home.
Step #2: Work with your Realtor to understand and budget for Closing Costs. Sellers in the Central Oregon market are typically responsible for the following items/fees associated with the settlement of real property: realtor commissions, recording fees, owners title policy, etc.
Step #3: Factor in the unexpected! In competitive markets, it's common for a seller to offer a concession toward some or all of a buyer's closing costs upfront, as an added incentive after weeks of slow activity, or as a result of an issue that arises, during a home inspection, for example. Often times, this practice can make your home seem more appealing to a buyer that may not otherwise have the cash to cover repairs and/or costly closing expenses.
Failing to plan ahead can leave you blindsided by fees that will affect your bottom line. My solution for you is to find a Real Estate professional that you trust that will support and educate you through the process. Having a professional that can set the expectations up front based on the market will make the entire process so much smoother and leave no room for surprises. I am here to be that trusted professional for you. I provide a net sheet for all of my clients so they can see what they will Net when they sell their home and educate them on the market and what type of offers to expect for their price point.
At this point, you may be convinced that you may need some guidance around closing costs. But you may also be thinking that you have no idea where to start. If you're thinking about making a move, I can help you through the process. Just send me a message or call/text me at 541-241-6850. No pressure, no sales tactics, just the help and guidance that you need!