January 17, 2019
Typically when planning a real estate sale, people think about hiring an agent, setting a sale price, installing a sign and beginning the marketing process. While that is the starting point, those aren’t the only considerations you have to take into account. There are several costs beside the mortgage payoff and even the real estate commission fees you need to make sure you are prepared to deal with the total cost involved in selling a home.
This is one of the biggest reasons a sale falls apart. A home inspection reveals a repair possibility and a buyer, already nervous and anxious about buying, might over react. You might want to consider having a pre-inspection done and head off a concession demand.
Do your own pre-inspection, or ask your local marketing specialist for assistance. Do any repairs or maintenance prior to listing on the market. Most often actual repair costs are much less than concession demands and there are no negative feelings heaped onto an already stress laden process.
Lender Required Concessions:
The type of mortgage a buyer has secured may carry seller concession requirements you will be expected to meet. Fannie Mae guidelines, FHA and VA loans allow for 3-9%. The marketplace you are selling in has influence on these concessions. Your local marketing specialist will provide specific data to help you determine this once an offer is received.
The actual closing costs you encounter will include an assortment of fees. The cost of these will also vary depending on what is owed or what you have agreed to pay. These include the closing attorney fee, filing and recording fees, transfer tax, your portion of property tax due and any mortgage payoff.
You may also have additional costs for things like a Home Warranty. Not sure you should get one? Your local marketing specialist, who has helped others just like you sell successfully, will be able to advise if this is a good option for your circumstance.
And last but not least – don’t forget to include the cost of moving to your next home!