Today is all about closing costs and specifically about the closing costs sellers are responsible for. We made a great video for you to watch, but if you would rather just read along, skip ahead!
One of the most common mistakes that sellers make when it comes to listing their home, is failing to budget appropriately. I see this especially often when it comes to closing costs.
Sellers in Portland should expect to pay about 7% of the total sales price in closing costs. On a typical home priced at 500,000, a seller should anticipate allocating about $35,000 toward closing costs. That number is inclusive of most fees, however, it will vary depending on your specific situation. If you have equity in your home, these fees will be deducted from your proceeds. However, in some cases, a seller may be required to actually bring money to the closing table. We don’t want this to happen to you. Here are my top 3 tips so we are fully prepared before listing your home.
Discuss the true cost of selling
Before you decide to list your property, meet with a local real estate expert. You want to discuss the true cost of selling your home. As a licensed Realtor®, I’m able to provide you with resources like a closing checklist and a seller net sheet. These will help you to better understand the home selling process, your responsibilities as a seller, and what you can expect to net from the sale of your home.
Budget for Closing Costs
Work with your Realtor® to understand and budget for Closing Costs. Sellers in the Portland market are typically responsible for paying; Commissions, mortgage payoff, title search fees, transfer taxes, city recording fees, unpaid property taxes, and any other liens that may be on the property. We want to have a clear idea of what these numbers add up to.
Factor in the unexpected
In competitive markets, it’s common for a seller to offer a concession toward a buyer’s closing costs. This is done as an added incentive. As an example, it can be done after we may have had weeks of slow activity, or as a result of an issue that arises during a home inspection. Often times, this practice can make your home seem more appealing to a buyer that may not otherwise have thought of buying your home because they didn’t have the cash to cover potential repairs or their own closing expenses.
Planning ahead will ensure that we both have a pleasant transaction together. You will have a clear idea of exactly where you will be financially, and there won’t be any what-ifs left to think about. If you have some questions or want any guidance, please feel free to reach out to me and I am happy to walk you through the specifics.
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