Home Buying in 95624>Question Details

kennytheb, Other/Just Looking in Elk Grove Orchards,...

I'd like to know what are the costs to the seller when selling their home.

Asked by kennytheb, Elk Grove Orchards, Elk Grove, CA Thu Oct 4, 2012

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In this market, the 'norm' (what i see more often than not) is the buyer asking the seller to pay all costs related to the sale of the home, which are detailed in Bruce's answer below. Buyers used to ask for the seller to pay some concession toward their loan costs (e.g. 3% seller credit to buyer's recurring and non-recurring costs of the loan) but not in THIS market.

A good strategy when selling your home in today's market is to structure it such that you receive competitve bids. That will generate competition and hopefully bring you the best PRICE. But the price will also have downward pressure by the buyer's loan appraiser who will bring the price in close to what similar homes have sold for. Another way a sharp buyer's agent will make their buyer more competitive is to offer to pay more of the TERMS.

In the case of a competitive bid on your home, the terms may give you a larger net than just competing on price, and save you from many of the costs outlined below.
0 votes Thank Flag Link Sat Oct 6, 2012
I concur - Bruce has a good response. That said, please know that different parts of the state have different norms....AND you buyer may write a purchase contract asking for something different than the norm.

Good luck.
0 votes Thank Flag Link Thu Oct 4, 2012
Bruce has a good answer, I would only add that all those items are all paid according to customary practice in your area, unless the contract has been written differently. Your escrow officer can tell you what is customary and give you an estimate of total costs.

Additionally, if you haven't paid property taxes you will have to pay a pro-rated portion from the time you last paid through the date of sale.
0 votes Thank Flag Link Thu Oct 4, 2012
Here are some of the common costs:

Commission to the listing agent and buyers agent (negotiable)
County transfer tax (based on sales price)
Escrow Fee
Title Insurance Fee
Courier fees
Natural Hazard Report
Notary fees for the closing
Demand fee from your current lender
Any possible "lender required repairs" which could include items like:
broken window, exposed wiring, appliances that don't work, pest report repairs

Other items depending on the offer you get and negotiation :
Home warranty
If you have a wood shake roof or roof has issues: 2 YR roof certification
Any negotiated repairs from the home inspection and request
Closing costs credit to buyer

Other fees could be added if the contract is a VA contract as VA does not allow the buyer to pay some costs

Its really hard to tell you what common costs there are without knowing condition of home, age, area and ultimately the buyer who put a contract on your home. Hope some of this helps

Bruce Slaton
Realty World eCurb REALTORS
http://www.ElkGroveHomeSource.com
Lic # 01305148 CA
0 votes Thank Flag Link Thu Oct 4, 2012
There is always basic fees when selling a home whether you sell it yourself or hire a Realtor. Usually its around 1 to 1.5% of the purchase price not including commission. I always sugeest you use a escrow company, order title insurance, and provide necessary disclosures such as a NHD report w? tax and CLUE.
If you are thinking of selling your home I would contact three Realtors in your area and interview them. Ask them to provide you with a seller's net sheet so you know what your bottom line will be including commission.
If you are in a position where you are under water on your mortgage I would talk to someone about short selling your house. In most cases that would be a sale at no cost to you. Make sure you hire a experienced short sale Realtor in that case.
Bhttp://www.trulia.com/blog/laura_coffey_abr_qsc/2011/03/10_questions_to_when_interviewing_a_potential_real_estate_agentelow is a link to help you interview a agent.
0 votes Thank Flag Link Thu Oct 4, 2012
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