Kevin Song's Blog
If this is your first time selling a home, you might not be familiar with the costs associated with selling. Lenders and agents help to make this process as simple as possible for both the buyer and seller. However, it’s still a good idea to know what to expect to pay for selling your home, as it seems counter-intuitive that you would have to pay to sell something.
Due to the consolidation of costs by lenders, it can be easy to glaze over the list of closing expenses without fully knowing what they mean. But since many fees can be negotiated, it pays to learn the ins and outs of closing costs.
Whether you’re selling your home soon or just want to brush up on real estate processes, this article will give you a better understanding of closing costs from the perspective of a seller.
Buyers typically pay the majority of the closing costs associated with purchasing a home. However, there are some closing costs that buyers are at least partially responsible for.
Notary fees, expenses from escrow, and title insurance are all likely costs you’ll have to dish out before closing.
Real estate agents typically earn a commission on selling a house. The work they put in saves you in several ways. First, you don’t have to pay for all of the marketing expenses associated with selling a home. This includes photography, sign-making, and online listings.
Agents can save you in other ways, as well. They’ll help you price your home effectively, negotiate prices, and take care of the time-intensive process of showing your house. You won’t want to have to take time off from work to try to DIY these steps.
Since you’ve likely owned your home for a while now, you’re familiar with paying property taxes. If you pay taxes yearly and are moving toward the end of your pay cycle, you’ll have to pay a prorated rate for the amount of time you’ve lived in the home that year.
The burden is also yours for any remaining HOA fees and state transfer taxes. Not every state charges transfer taxes so be sure to check the cost for your state.
Moving can be an expensive endeavor. Aside from hiring movers, renting vans, or buying boxes, there are a number of expenses we don’t often think of when preparing to move.
First, it will take you a while to get your new home set up. That means you should be prepared to eat out for a while until you get settled.
On top of that, there’s also the matter of having to take days off from work, which can be costly in its own right.
Those are some of the most common expenses a buyer has to worry about during closing. Your real estate agent will be able to give you a comprehensive rundown of costs and help you find the best agreement.
What should you expect after you make an offer on a residence? There are several steps that will take place between the time you submit an offer on a house to the date you finalize a purchase agreement, including:
1. Acceptance or Rejection of Your Initial Proposal
A home seller will have a short period of time to accept or reject your initial offer.
If a home seller accepts your proposal, you'll be able to move forward in the homebuying process. Conversely, if he or she rejects your offer, you may be forced to restart your home search.
On the other hand, a home seller may counter your offer as well. In this scenario, you likely will be given a set amount of time to accept or reject the counter-proposal. Or, you may be able to further negotiate with a home seller in the hopes of finding common ground.
The time between when you submit an offer on a home and receive a home seller's response to your proposal can be stressful. Fortunately, working with an experienced real estate agent ensures that you'll be able to stay up to date. This real estate professional will even help you put together a competitive offer on any home, ensuring that you can boost your chances of getting an instant "Yes" from a home seller.
2. Completion of a Home Inspection
Although a home seller has accepted your initial proposal, you'll still want to conduct a thorough home inspection to identify any major property issues.
For example, if a house has a faulty roof or defective hot water heater, an expert home inspector will be able to uncover such problems immediately. That way, you can learn about issues that may impact the long-term value of a home as part of an inspection.
If you find out about major issues with a home during a property inspection, you can rescind your initial offer and walk away from a house. Comparatively, if you still want to buy a home in spite of problems that were discover during an inspection, you can ask the home seller to complete home repairs or upgrades. You also may want to consider asking for a price reduction if major home repairs or upgrades are needed.
Ultimately, a home inspection will help you make an informed homebuying decision. After a home inspection, the ball is in your court, and you can choose to move forward with the purchase of a home, revise your initial offer or remove your proposal altogether.
3. Relocation to Your New Address
The final step of the home selling process involves closing on a home and relocating to your new address. At this point, all you'll need to do is pack up your belongings from your current location and move them to your new home.
Purchasing a home may seem impossible at times, but the homebuying process often gets easier as it progresses. Plus, homebuyers who collaborate with an experienced real estate agent can receive plenty of support as they navigate each stage of the homebuying journey.
Want to add your house to the real estate market? Work with an expert real estate agent, and you can streamline the home selling process.
A real estate agent can make a world of difference for any home seller, at any time. This housing market professional will teach you the ins and outs of selling a home and ensure you can get the best price for your residence. Plus, he or she will be ready to respond to your home selling questions and provide consistent support as the home selling journey progresses.
Ultimately, it is important to understand what it takes to work with a real estate agent. This will allow you to maintain a positive approach throughout the home selling process. It might help you improve your chances of a quick sale too.
What does it take to work with a real estate agent? Here are three rules that every home seller should consider.
1. Hire a Real Estate Agent That Makes You Feel Comfortable
Selling a home can be stressful, particularly for a first-time property seller. Fortunately, working with the right real estate agent ensures you can receive world-class home selling guidance.
As a home seller, you should employ a real estate agent that makes you feel comfortable. This housing market professional will be able to alleviate your home selling concerns and guarantee you are fully supported at each stage of the home selling journey.
2. Keep the Lines of Communication Open at All Times
What good is a real estate agent if he or she won't keep you up to date about home showings, offers on your residence and homebuyer feedback?
For a home seller, it is paramount to collaborate with a real estate agent who can provide immediate assistance. This housing market professional should be ready to communicate with you via phone, email and text and provide regular updates throughout the home selling cycle.
Your real estate agent also should be unafraid to be honest with you. That way, you can receive unbiased suggestions and recommendations from your real estate agent that can help you make informed home selling decisions.
3. Understand That Problems May Arise During Home Selling Process
Although a real estate agent will do everything possible to promote your house to the right groups of property buyers, it is vital to remember that the real estate market offers no guarantees. In addition, problems sometimes may arise that may slow down the home selling journey.
Your real estate agent should be able to describe challenges that you may encounter before you add your residence to the housing market. This will enable you to plan ahead and allocate the necessary time and resources to reduce the risk of such problems.
Hiring a real estate agent to help you sell your house may seem difficult at first. But with the aforementioned tips, you can find an expert real estate professional who will make it easy for you to sell your residence.
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A home seller may face a variety of dilemmas as he or she tries to get the best price for a residence. However, a seller who prepares for potential problems may be better equipped than others to enjoy a fast, profitable property selling experience.
Now, let's take a look at three tips to help you get ready for potential home selling dilemmas.
1. Upgrade Your Residence
You may believe your residence will sell quickly, but the housing market offers no guarantees. Fortunately, if you allocate time and resources to upgrade your residence, you could differentiate your home from comparable houses in your city or town.
Removing clutter will make it easy for you to show off the true size of your home's interior to prospective buyers. Furthermore, you should clean each room of your home. If necessary, you may want to hire a professional home cleaning company too.
Don't forget to trim the hedges, mow the front lawn, repair cracked or damaged siding and perform other home exterior upgrades, either. If your home boasts amazing curb appeal, potential buyers may fall in love with your residence as soon as they see it.
2. Establish a Competitive Initial Asking Price for Your Home
If your home's initial asking price is too high, you risk alienating potential buyers. But if you analyze the real estate market closely, you can use housing sector data to establish a competitive initial home asking price.
Take a look at the prices of recently sold houses in your city or town, as well as the prices of available residences that are comparable to your own. This information provides a glimpse into the current state of the housing market and can help you determine how to price your residence.
It may be beneficial to conduct a home appraisal as well. In fact, a home appraisal report includes a property valuation that you can use to set a competitive initial asking price for your residence.
3. Collaborate with a Real Estate Agent
A real estate agent understands what it takes to sell a home in any housing sector, at any time. As such, he or she can offer expert guidance to help you identify and overcome home selling dilemmas.
Oftentimes, a real estate agent will meet with you, find out why you want to sell your house and craft a personalized home selling strategy for you. He or she next will list your residence and promote it to prospective buyers. And if you receive an offer to purchase your house, a real estate agent will help you determine how to proceed with this proposal.
A real estate agent also is ready to provide immediate responses to your home selling concerns and questions. That way, you can receive plenty of support as you navigate the home selling journey.
Ready to add your house to the real estate market? Use the aforementioned tips, and you should have no trouble addressing potential home selling dilemmas and enjoying a seamless property selling experience.