Costs Associated with Selling
The costs associated with selling your home can be broken up into two categories: commissions and closing costs. Let’s review these costs now to help you determine if I am the agent for you.
Seller's Costs
The biggest cost to selling your home is the commission. You may have forgotten this when you bought your home but it is the seller that pays both agent’s commissions. Yep that’s right. Traditionally a 5% commission split between the buyer and the selling agent was customary. Lucky for you, these days you can find agents charging even less commission, especially if they are new to the industry. Unfortunately, fresh agents lack the negotiation skills and expertise when setting the price and marketing the home. I recommend a commission to the buyers agent of 2-2.5 percent depending on sales price. I won’t work for less than 2% and would ask a small bonus if I can sell your home or property $10k above market value.
- Broker fees: 4%-4.5% of sales price
- Transfer tax: $1.10 per $1,000 of purchase price
- Property tax: Prorated at closing, if applicable
- Document preparation fee: $150–$250
- Recording fees: $125
- Escrow fees: Varies but around $1,500
- Mortgage payoff: Subject to loan balance
- Courier and wire transfer fee: $50–$150
- Home warranty fee: Varies, if applicable (typically around $500)
- Condo or HOA fees: Prorated at closing, if applicable
- Miscellaneous condo fees: Varies
