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Ken O'brien, Home Seller in Sendero Springs, Round...

What will closing costs be when I sell my home for 275000?

Asked by Ken O'brien, Sendero Springs, Round Rock, TX Thu Jan 20, 2011

I am selling my home for 275000. What will the closing costs be ? I am willing to pay 3% to rel estate agent.

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12
Hi Ken,
You can roughly estimate that is costs you, the seller, around 9% to sell your house. That includes a 6% brokerage fee & title/closing fees. That does not include anything else negotiated into the contract, ie: if you are assisting buyer w/ closing costs. If you're selling on your own, but paying a 3% brokerage fee for the agent that brings you a buyer, then you can estimate around 6% in closing costs. There's much more to it though and generally a Realtor can help you determine the best price your home will sell for and in most cases get you more money than you could on your own. Just food for thought! Hope this helps.
Leslie
2 votes Thank Flag Link Thu Jan 20, 2011
what will closing cost be when I sell my home for $745,500?
0 votes Thank Flag Link Mon May 16, 2016
Great question to ask a Title agent, typical in AZ is between 1-3%, if you had a Realtor they could provide you with a cost sheet. It sounds like you are not using one cause you "are willing to pay 3%" which will take care of the buyers agent. Good luck with selling your house.
0 votes Thank Flag Link Sat Jan 22, 2011
Ken,

It's up to your negotiating skills coupled with the cost of your home relative to what items you will agree or not agree to pay for. Additionally, it does matter what time of year you close as well. Let's go down the list:

1. You've already agreed to pay a buyer's agent up to 3.00% for your For Sale By Owner.
2. Generally, the Owner will pay for the Buyer's Title Policy & Buyer will pay for Lender's policy. While you don't have to agree to this it will affect your final negotiated price. Owner's Title/Escow Fees/Courier/Recording Fees will likely run somewhere in the neighborhood of 1.00% based upon your proposed sales price. Title rates are set by the Texas Department of Insurance and are NOT negotiable. Only who pays for what is.
3. Additionally, you will be responsible for your pro-rata share of Real Estate Taxes for the year based upon last year's tax rate. If you sell early in the calendar year your impact will be minimal, if you sell late in the year, you will be paying for most of your annual tax bill.
4. The amount of interest due on your current mortgage will be impacted by whether you close early in the month or later in the month.

As you can see, at best your looking at costs of around 5%, but it could be as high as 8-9% depending on what time of year you close.

Scott Butcher
Mortgage Banker
Maker Capital Group
512-796-7738
scott@makercapitalaustin.com
0 votes Thank Flag Link Sat Jan 22, 2011
These are my favorite responses to your closing costs question: "Always recommend use a Realtor", "ask your agent", "obtain professional representation". What does that have to do with your question???

You can estimate closing costs in Texas around 3%. Which means you're looking at about $8,250 to sell your home. Agent fees and anything else negotiated will be on top of that. See, simple answer!

Good that you'll pay buyers agent 3%, and you're going to put $8K in your pocket by selling by owner (kudo's to you!) but in this economic market, you really need to be in the MLS. Consider "flat fee" listing it in the MLS where a broker will add your listing to MLS so everyone can see it, and put you as the point of contact. It's only a couple hundred bucks, and it's probably the best marketing you will pay for.

Get with a title company for your TREC contracts and forms (or download them online from the TREC website), they'll help you with filling them out without the added cost of a realtor.

Good luck!

Tony Z
0 votes Thank Flag Link Thu Jan 20, 2011
Maybe you should consider leasing it until the market improves. I just leased a home on Aria for $1800!

Greg
Broker Associate
0 votes Thank Flag Link Thu Jan 20, 2011
Hello Ken,

In a typical transaction the seller would be paying 6% to the listing agent who is representing you. That fee is then split between both the listing and buyers agents. Everything is negotiable in real estate but you will most likely not want to offer a buyers agent less than the customary 3% as some agents will not show your property.

The most important thing you can do in this market is price your home correctly. If you overprice your home you are going to miss a lot of potential buyers. Overpriced homes have two main problems.

1. They do not compare well with the current competition because potential buyers are seeing everything available in the MLS and they will always go with the home that represents is priced correctly and is in excellent condition.

2. Potential buyers who would be interested in your home will not see the home in their searches because they are priced out of their search parameters.

Because of this the most important thing you can do to net the most money for your home is to price it correctly. You can read my blog article on selling your home here on Trulia in my profile. It offers a lot of good information. I will even take the time to drive my clients to review several homes that will be their direct competition so they can see first hand how some homes are priced and how they compare to theirs. It is very helpful when trying to price the home. Remember, you only get one chance to position your home in the market correctly from the start. The longer your home sits on the market the more stale it becomes. Make sure you work with an agent who is going to give you constant analysis of the market and how it is changing.

The other typical closing costs have been described in the other answers. Things like title fees, HOA and taxes will vary depending on the home. If you like I can prepare a net sheet for you so you can see the full break down of all the costs involved with selling your home.

Best of luck to you.

Don Groff
REALTOR | Mortgage Broker
Keller Williams Realty | 360 Lending Group
512.669.5599
listings@dongroff.com
0 votes Thank Flag Link Thu Jan 20, 2011
Hi Ken,

Here is a link to seller estimated closing costs (pdf):

http://www.relianttitleusa.com/ClosingCostsSeller.pdf

Best, Todd
Web Reference: http://homesarehere.com
0 votes Thank Flag Link Thu Jan 20, 2011
Ken,

The answer to your question is very dependent on the final contract that you sign. How well you negotiate will affect the closing costs at the end of the deal. There are a number of transaction costs that must be paid by somebody which include: owners title policy, lenders title policy, attorney fees, release of lien, recording fees, courier fees, escrow fees, tax certificate, HOA transfer (if applicable), etc. Who pays for these is a negotiable part of the contract. The standard Texas resale contract provides some guidance as to which party normally pays which fees.

For numerical estimates, you should visit the title company where you intend to close the transaction.

Or, since you are already willing to pay 3% to a real estate agent, you might want to consider increasing that amount a bit and obtaining professional representation. I believe in the end this will be less expensive than trying to do this yourself.

Good Luck!
0 votes Thank Flag Link Thu Jan 20, 2011
Hi Ken
You will want to find you a good title company to assist with your closing. They can go ahead and give you a preliminary estimated settlement statement. That might help you in your financial planning.

Also, of course, when you list your home with a realtor, they should give you a seller cost sheet to help with some of the fees...this would also be an estimate until the contract has items negotiated.

Happy selling....
Web Reference: http://www.blaseryoakum.com
0 votes Thank Flag Link Thu Jan 20, 2011
For a good picture of closing costs, ask your agent the question--generally costs include--pay off on current mortgage, attorney fees, real estate agent(s) commission, escrow fees, taxes, title fees, courier fees, etc., again, your agent can best advise.
0 votes Thank Flag Link Thu Jan 20, 2011
Sounds like youre trying to sell your home by yourself? Who is going to handle the title work? Do you have a title company and/or an attorney lined up? You will likely have title fees. Your title company should be able to give you a quote. Then you'll also have to pay your taxes (Jan 1 to date of closing). You may have to also pay for other pro-rated items (sewer, water, HOA fees, etc.) for the month in which you're closing. Your buyers may also ask you to pay for all or part of their closing costs (pretty common these days). Their closing costs are a lot more than yours (not counting the commission)

As always, I highly recommend using a Realtor. You have a large amount of money on the line, and you want it to go smoothly. Problems come up (more often than not) and you need someone representing you and looking out for your best interests. Good luck!
Web Reference: http://www.sallygrenier.com
0 votes Thank Flag Link Thu Jan 20, 2011
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