Nothing is without a cost and this includes selling your Miami house. When you decide what the asking price for your home will be and you list your home for sale, your real estate agent should give you a Seller’s Estimated Net Proceeds worksheet. Such a worksheet will give you an itemized list of estimated costs that will be deducted from the selling price of your home when you close. It is important to be familiar with some of these costs so there are no surprises on closing day.
💲 Real Estate Agent Commission
Some agents and brokers will work for a flat fee. However, a majority work on a commission basis. This means they will be paid a percentage of the purchase price when you sell your home. Six percent is a reasonably standard commission rate in the United States. However, you may be able to negotiate that rate. The commission is often the single biggest expense when it comes to selling a home. You should keep in mind that your agent will likely be splitting this commission with the buyer’s agent.
💵 Property Taxes
Your taxes will be pro-rated based on the number of months out of the year you lived in the home. The new homeowner will receive the property tax bill at the end of the year and will be responsible for paying the tax bill. But, you will be required to pay the pro-rated amount for the time period you lived in the home before the sale.
💰 Mortgage Payoff Balance
When you sell your home, you’ll need to pay off the loan you have on that home. This includes second mortgages and home equity lines of credit. Therefore, it is good to know what the balances are on these items so that you won’t be shocked if it takes a sizeable chunk out of your proceeds to pay these off.
👤 Seller Concession
The buyer may ask you for a concession. A concession helps the buyer pay for closing costs. For instance, if the buyer asks you for a concession of three percent, this means that three percent will be added to the agreed upon selling price. You will then give back to the buyer that three percent, so they can put that amount toward closing costs.
🛠️ Home Repairs
You might be required to make home repairs. The seller may agree to your asking price if you make certain repairs. If you decide not to make the repairs, you will likely go back to negotiating the selling price. In the event that the lender requires repairs, you will probably need to make such repairs, so the deal is able to move forward
📝 Escrow Fees
The escrow agent acts as an intermediary between you and the buyer. They ensure that all money is handled properly. It is the escrow agent’s job to receive money from the lender, pay off your mortgage, collect closing costs, collect deposits and ensure the lender receives the proceeds. You may be able to split the escrow fees with the buyer.
📜 Title Search Fees
A title search is necessary because it tells all parties that you have the legal right to sell your home. Title companies will search public records to give a title insurance commitment. Such a commitment says you own the home and will detail anything that might affect the title such as mortgages, liens, home owner declarations, easements and restrictions. If anything is found during the title search that negatively impacts your ownership of the property, such issues will need to be corrected before the sale can move forward.
📅 Typical Closing Costs Paid by the Seller
As the seller, you typically should expect to pay a closing fee which is paid to the title company or attorney’s office where the closing is held. You will also be responsible for paying for the taxes on the sale of the home. If you have an attorney to assist with the closing, you will have to pay an attorney fee as well. Finally, a fee will be charged for transferring the title to the new homeowner.
Keep in mind that some of the closing costs can be negotiated and split with the buyer. There are other expenses that you can expect, and your real estate agent can help you estimate such expenses. The goal when selling your Miami house is to get an estimate of what your costs are going to be, so you have an idea of what your net proceeds will be after the sale.
Your real estate agent is the best source of information about the local community and real estate topics. Give MarieJoseeMiami a call today at 786-486-9216 to learn more about local areas, discuss selling a house, or tour available homes for sale.