Elena Peters, Home Buyer in Laguna Niguel, CA

what do i pay for as a seller?

Asked by Elena Peters, Laguna Niguel, CA Thu May 15, 2008

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The only "must pays" are existing loans and interest, taxes, liens and judgments. Everything else is negotiable. Granted you will have a hard time finding a good Realtor to work for free, but nothing dictates that you have to use a Realtor. There are "typical" seller expenses but in the case of many Bank Owner properties and short sales, we are seeing the banks not willing to pay any of the typical associated seller costs.

If the house is not bank owned or a short sale, the seller should consider all the seller contribution requests made by the buyer and factor those into their decision. If you have a specific scenario in mind and are not under a listing agreement currently, I would be happy to discuss your situation with you at no cost and with no obligation. Thanks and good luck in the sale of your home.

Dave Osborne
714-349-5454
Web Reference: http://www.TheOCmls.com
0 votes Thank Flag Link Wed May 28, 2008
Hi there Elena,
I have attached a link that will explain what a seller is responsible for when selling a home in CA
http://www.westernresourcestitle.com/pdfs/buyers-sellers/6_W…

The Commission is negotiable and I would love to apply for the job of Marketing your home, I can help you get the maximium amount for your home

Kind Regards
Michael Barron
First Team Real Estate
(714) 552-6817
0 votes Thank Flag Link Thu May 15, 2008
When you sell a home, there are a number of costs associated with the sale, some of which are more obvious than others.

Generally, the biggest cost involved in selling a home are the agent fees. If you hire an agent to assist you with the sale of your home, you will typically pay a commission to the agent who represents you in the sale and a separate commission to the agent who represents the buyer. The average commission for each agent is 2-3%, which means that agent fees will generally cost you 5-6% of the sales price of your home.

Aside from agent fees, there are a number of other fees that are standard in any home sale in California. Here are the major ones:

* Escrow Fees
Unless altered by the purchase agreement, the seller and the buyer pay their own escrow fees. Like agent fees, escrow fees are typically based on the sales price of the home. To get an approximate calculation of the escrow fee, add $2 for every $1000 in the selling price, plus a base fee of $250. So if the selling price of your home is $500,000, you would calculate the escrow fee as follows: $500,000 / $1000 = $500, $500 x 2 = $1000, $1000 + $250 = $1250. So your escrow fee would be $1250.

* Title Insurance
When you sell your home, you will need to purchase Owners’ Title Insurance. Title insurance provides the buyer with insurance against anyone who might later claim they are the rightful owner of the home. Title insurance fees vary depending on which company you choose to purchase your policy from. For a $500,000 home, an Owners’ Title Insurance Policy would be somewhere in the neighborhood of $1600.

* Transfer Tax
When you sell a home in Orange County, you must pay a transfer tax to the county. The transfer tax is based on the sales price of your home and amounts to $1.10 for every $1000 in the sales price. So if the sales price of your home is $500,000, the transfer tax would be $550.

* Home Warranty
It is customary for a seller to provide the buyer with a home warranty. A home warranty provides the buyer with coverage for unexpected problems that develop in the home after the sale has concluded. The average cost of a home warranty is $400.

* Miscellanous Fees
There are additional fees that may be added to your closing costs. These fees include a Homeowner’s Association Transfer Fee, termite inspection fee, the cost of any termite repairs, courier fees, and wire transfer fees.

If you I can be of further assistance to you in selling or buying a home in Orange County, please feel free to contact me directly.

~Amanda Wheeland
O.C. Real Estate Advisors
Author of O.C. Home Sellers Guide (2008)
0 votes Thank Flag Link Thu May 15, 2008
Elena,

Part of the answer is based on the customs in the area, and part is typical transaction fees. If the custom is for seller's to pay for the new owner's title policy, then that's an expense attributed to you. Other than this, you'll have closing fees associated with the transaction, and you'll have to pay your portion of any accrued taxes, home owner dues, and other accruals.

A good listing agent will provide you with a worksheet of all of your estimated costs so that you know ahead of time what net amount of money you can expect to walk away with. If you're shy about contacting an agent, many title and escrow companies provide this type of information on their websites. But getting representation by an agent takes the legwork out of it for you.

Curious, your question asked what the seller pays for, but your profile seems to indicate you're a buyer?

Anyway, good luck,

Jeffrey
0 votes Thank Flag Link Thu May 15, 2008
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