Selling a house can be an exciting yet daunting experience. There are many things to consider, including who pays for what. The costs of selling a house can add up quickly, so it’s important to understand who is responsible for each expense. In this blog post, we’ll cover the different costs associated with selling a house and who pays for them.
Real Estate Agent Commission
One of the biggest expenses when selling a house is the real estate agent commission. The commission is typically 5-6% of the sale price of the house and is split between the buyer’s agent and the seller’s agent. The seller is responsible for paying the commission, so it’s important to factor this into the sale price of the house.
Closing Costs
Closing costs are fees associated with the sale of a house. These costs can include title search fees, title insurance, appraisal fees, and attorney fees. In some cases, the buyer may agree to pay some of the closing costs, but typically the seller is responsible for paying these fees. Closing costs can range from 2-5% of the sale price of the house, so it’s important to factor these costs into the sale price.
Home Repairs
Before selling a house, it’s common for the seller to make some repairs to make the house more attractive to potential buyers. The cost of these repairs is typically the responsibility of the seller. However, if the buyer requests repairs during the home inspection process, the buyer may agree to pay for some or all of the repairs.
Property Taxes
Property taxes are typically prorated at the time of closing. This means that the seller will be responsible for paying property taxes up until the closing date, and the buyer will be responsible for paying property taxes from the closing date forward. The amount of property taxes owed can vary depending on the house’s location.
Mortgage Payoff
If the seller still has a mortgage on the house, it must be paid off at the time of closing. The remaining balance will be deducted from the sale price of the house, and the seller will be responsible for paying any remaining balance.
Conclusion
Selling a house involves many different expenses, and it’s important to understand who is responsible for each cost. The seller is typically responsible for paying the real estate agent commission, closing costs, home repairs, and any remaining mortgage balance. It’s important to factor these costs into the sale price of the house to ensure a successful and profitable sale. If you’re considering selling your house, be sure to work with an experienced real estate agent who can guide you through the process and help you understand the costs of selling a house.