So you’re thinking of selling your home. Since many Spokane Home Sellers buy or sell once every five to seven years. Many do not keep up with the day-to-day costs to sell a home.
While Real Estate Commissions are a part of the home selling costs, there are other various costs that come into play when selling your home.
We won’t cover the costs associated with getting your home ready to sell, that’s for another time. We are going to go over a brief over view of typical costs to sell your home.
Title and Escrow: Title and Escrow costs are very typical costs to sell your home. Plain and simple, the Title fee is for a Title Insurance Policy, insuring the new owner, and usually their bank’s interest in the property. Essentially, guaranteeing you have the right to sell it and once you do, the property is rightfully theirs, subject to any encumbrances (loans etc.)
Excise: Excise is essentially a Sales Tax on Real Estate. It’s a 1.78% (in Spokane County) charge. Most of the fee goes directly to the state, while a small portion goes to Spokane County to help fund various projects the fund is designated for.
Commissions: Real estate commissions are negotiable. I for your numbers, I would estimate 6%. A listing agent will market and sell your property with the funds out of their own pockets. A reputable listing agent runs their practice like a business and can show you their results and provide you with various testimonials and reviews.
Seller Paid, Buyer Closing Costs: These are NEGOTIABLE, but many buyers will want/need assistance paying their closing costs. Buyer closing costs are the costs associated with getting their loan, building tax and insurance inbound accounts etc. Many buyers are strapped coming up with a downpayment, or need additional funds after closing for moving and small renovations. They insist on receiving a contribution from the seller towards these costs. These costs usually range in the ballpark of 3%.
These are the basic costs of selling your home. Depending on your circumstance, these can be lower in some scenarios. If you’re interested in selling your home, we can run a “Seller Net Sheet” during our consultation so you know exactly what you are paying to Excise etc., and we can help determine how much you will put in your pocket at closing.
For more information or a consultation, please contact us at (509) 990-7653.