When you are selling a house, there are lots of things that must be considered for sure. Though the United States gives the sellers of the house a lot of advantages in most of the housing markets, there are many transactions that you have to take care of while selling. The most common and frequently asked question is – when selling a house who pays for what? If you are thinking the same, do not worry as we are here to help you.
When Selling a House Who Pays for What
Planning to sell your home? We will tell you about all the details about the cost of selling a house. If you are thinking that you will only receive money as you are selling the house, then you are wrong. There are some of the costs that the seller has to take care of.
Cost of Selling a House
There are some costs like real estate commissions and many other fees that can take up to 10% of the total selling price of your house. Some of the expenses are negotiable and they can fluctuate with the real estate market. But the sellers must pay all the bills and other costs of selling the house. Some of the costs that must be done by the sellers are:
Commission fees of the realtors.
The real estate commission is one of the biggest fees that the sellers have to pay. It can be 5% to 6% of the total selling price of the property. So, if you have sold the house for about $250,000, then you may have to pay a commission of about $15,000. The commission is split between both the buyer’s agent and the seller’s agent. In the majority of the cases, the seller has to bear the cost.
Home repairing costs.
There are several things to do when you sell your house, repairs is a very important one. If you want to sell your house, then you can consider repairing and renovating some of the important features of the house which can potentially increase the value of the house. It can be done on both the exterior and the interior of your house. This can be anything from painting the walls to repairing leaky faucets. All these repairing and repainting costs must be given by the sellers.
Though this pre-sale home inspection is completely optional, you can choose it but it can cost around $400. Some of the sellers make this investment to find out if the mechanical and structural condition of the house is perfect and to find out if there is any problem in it. A home inspector will go through everything before any potential buyers can buy it.
Mortgage pay off.
Well, this is another cost that the seller has to bear. Before the home sale, the seller has to pay off the mortgage completely. But the chances are quite high that the payoff amount on the mortgage statement will be a little less in comparison to what you actually owe.
If you are selling an old house that needs work, you may have more costs on your plate. So, now you know everything about when selling a house who pays for what. Besides these, as a seller, you have to pay the closing cost along with some of the additional fees like capital gain tax, property tax etc. You must calculate all these before going into the final agreement.