You may have bought your home, with the thought that this is it, I am here for the next thirty years, this is where I want to live, Dream House, etc........ Things don't always work that way though, Job Relocation, More Children, Change in the feeling about the neighborhood you purchased in, all of these are factors that force people to sell their home!
When selling your home there are factors that you may not have encountered when you Bought a home, or you weren't paying attention to that at the time. The costs are different than when you purchased, here are some of those costs.
- Commission - in most cases this would be 5-7% of sale price (minus concessions) of the home. This is what is paid to Realtors.
- Search and Survey - as the seller you are responsible to have the Title Search (making sure there are no liens against the property) and Survey (Map of property lines) done before the close. The estimated cost for these can 1200 - 2500 dollars and is large chunk of the closing costs.
- Attorney Fees- the Attorney will clear or update the Title, and review the Survey. Also they handle all the small details of closing.
- Transfer Tax - In the State of New York, it's 9 dollars per 1000 dollars, so if a home sold for 100,000 dollars the transfer tax would be 9x100= 900.00 dollars. This tax is charged for transfer of title.
- Discharge of Mortgage- If your client has a balance remaining on the mortgage, if this number is higher than the sale proceeds then your client is taking a net loss, if there are any funds after everything else has been taken out that would be profit.
Even after you receive a Contract of Sale you're happy with, you're not home free till after the Property Inspection. Once completed the buyer can do one of 4 things, these are all located in the PINA or Property Inspection Notice Addendum in New York State.
- Cancel, as results of inspection are unsatisfactory
- Sign off as results are satisfactory
- Ask for repairs be done before closing
- Finally, ask for a credit to be done before closing.
Once this is signed off on you're close to being done with the Home. The Bank will have the property Appraised, and if that goes well you should be home free, but Banks can always delay the deal so be ready for a delay here or there. However if you have a good agent they should have prepared you for this. So good luck with selling that home, and if you need help please let me know!