Before listing a home, this is one thing sellers often wonder, what the overall cost of selling a home will be. When sellers think about selling their homes, oftentimes, their biggest concern is what they will net from the sale.
The answer to this question is often an important one, since it can determine many other things for the seller. It may determine how much they will spend on their next house and how flexible they are with negotiations from the start of the transaction. Or, if they decide to sell their home themselves.
In this post, we’ll take a closer look at how much it costs to sell your West Knoxville home.
The overall commission is something that many sellers are often concerned about when they sell a West Knoxville home. There are many times where sellers have a percentage that they think they’ll have to pay in order to sell a home.
There are many times where sellers think that 6% is often the going rate to sell a home. But, that is not always the case. Commission is always negotiable. As a seller, when you think about listing your home, don’t think there is a set commission. Talk with a few different realtors to see what options your provide you with and what those realtors offer you.
While the commission will be one of the biggest expenses of selling a home. It is also one of the most worthwhile expenses that you’ll spend. Realtors have a proven track record of selling homes for better prices. For example, the National Association of Realtors shows that the average sales price for an agent assisted sale is $240,000, while a FSBO sale is $185,000. That’s a difference of $55,000. So, in a sale where an agent is used, they pay for themselves above and beyond.
Seller paid closings costs (on behalf of the buyer) are another common thing that sellers will pay at closing. Many buyers, particularly first time buyers, don’t want to pay their closing costs, when that happens, they hope the seller will pay their portion of their closing costs.
The good news, though, is there is typically a cap on how much that you can pay for them. For example, on an FHA loan a seller can only pay up to 6% of the purchase price in closing costs. As a seller, you also have the ability how much you’re willing to pay in closing costs so that it doesn’t cut into your bottom line to much. It can also be a good bargaining piece. If your buyer wants you to pay for their closing costs, they’re usually willing to up the price in order to make that happen.
Seller paid closing costs are something that is very typical when you sell a home. Depending on your price range and area, your realtor can help advise you on if you will probably handle closing costs and the amount your will possibly pay.
You should also expect to pay your portion of closing costs when you close on a Knoxville home. In comparison to the buyer, your closing costs will be minimal, but it should be something that you factor in. Typically, the closing costs that you will pay will just be for your portion of title company fees.
Here are some fees that you should expect to pay:
You should expect that you’ll also be paying for a portion of your property taxes. If taxes haven’t been paid, you’ll credit the buyer for the portion of the year that you’ve owned the home. But, if you’ve paid your property taxes, they will pay you back.
While your portion of closing fees are minimal, you should be still prepared to pay them. There are many sellers who forget that they have to pay an portion of closings fees at all.
Are you thinking about selling your West Knoxville home this year? Please let us know if there is any way that Knoxville Home Team can assist you. Rick can be reached at 865-696-9002 or via email at [email protected]. Kati can be reached at [email protected].
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