Have you decided to sell your home but are wondering how much it’s going to cost you? In this video, I'm going to show you exactly how much it's going to cost you to sell your home. When you know your selling closing costs upfront, you’ll know exactly what you're going to walk away with at the close of escrow.

Selling your home can be stressful. Thinking about moving into a new area, packing the house, and finding a place to live can all cause anxiety. Do you know what's even more stressful than that? Selling your home without knowing what it's going to cost you. In the end, it doesn't really matter how much your home sells for. What matters is how much money you're going to have in your account when escrow closes.

Title And Escrow Fees

Some of the very first fees you should be aware of are your title and escrow fees. Your title fees are going to be for your title insurance. This covers any liens that come up on the property after we closed escrow; the title company would be responsible to make sure that those were all taken care of. Title fees can range anywhere from $1,200 to a few thousand dollars, depending on your sale price. When we get together, I'm going to be able to tell you exactly what your title fees will be.

In addition, you're going to have escrow fees. On a $500,000 home, these fees will run about $1,400. Again, this is an estimate; when we work together, I can give you exact figures of what your escrow fees will be.

Transfer Fees And Prorations

Since we're in LA County, we do have a transfer fee. This costs about $1.10 per every $1,000 of the sale price. This amount will be paid to the county for the transfer fee. We’re also are going to have prorations of taxes.

Additionally, we have prorations of interest and also of HOA fees—if you have one. Everything is prorated on the day of the recordation of the deed. Property taxes, HOA fees, and interest will all be paid until the day escrow closes. These aren't true closing costs, as they are more a cost of living in the property. You're going to have to pay this whether you sell your home or not, but they do have to be paid through escrow to close on your new home. Of course, the buyer is going to pay the taxes, association fees, and the interest on their loan from that day on when we close escrow.

Loan Payoff

Next, you have to pay off the loan on your property if you have one. This amount depends upon what you owe. Your bank will also charge payoff fees, usually ranging anywhere from $100 to $300. We have no control over that; it simply depends upon your bank and what they charge for the payoff information.

Realtor Commissions

Most sellers ask about real estate commissions. Sellers pay both the buyer's commission and the seller's commission. You probably remember when you bought the house that you didn't pay your buyer's agent any commissions. The seller paid for their commission, so now you're going to pay both sides of the commission.

That being said, commissions are negotiable. For example, I have different tiers of service that I offer. Depending on whether your house is vacant or just needs furniture brought in by a professional stager, commissions can be a little more or a little less. If the house doesn't need much and you just want me to bring in my staging stuff—like little knickknacks and things to make the house look nicer for pictures—that will cost you a little bit less. It all depends on what level of service you want for the sale of your home. This is something we'd discuss beforehand.

Marketing

Another question clients always ask is who pays for the photographer, drawings, and marketing. That is the seller's agent's responsibility to pay for, which comes out of the commission. It's not something you're going to pay for separately. Rather, it’s part of why you're paying a commission.

Total Closing Costs

When you add all of the closing costs together—your escrow fees, title fees, and payoff fees for your lender—you should expect to pay somewhere between 6-8% of your sale price. This, of course, is a rough estimate. When we meet, we can provide you with more accurate figures so you know exactly what you're going to walk away with at the end of the transaction.

If you would like to receive an estimated net sheet for your upcoming sale, see what we can do to market your home to get top dollar for you, or just have any real estate-related questions, feel free to reach out to me. I’d be happy to connect with you!

 

Ready to make your next move in Santa Clarita?


Contact Tami Cicerello with The Cicerello Team at RE/MAX Of Santa Clarita — your local real estate expert with 36+ years of experience helping sellers and buyers reach their goals.
📞 661–212–3413| ✉️ TamiCicerello@gmail.com
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