I am doing a FSBO house sale. Do I need to being any cash to the table for closing costs? Or are these covered by the sale profit on closing?

Asked by Tycash, 07081 Mon Sep 20, 2010

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11
John Harris, Agent, Manalapan, NJ
Mon Sep 20, 2010
Dear Tycash:

Ask these questions: How much are the total obligations against the property? Include all mortgages and any other liens that are secured by the property. Have you paid your town the sewer and water charges? Are you current with taxes, is there enough from the sale price, after subtracting the above to pay the realty transfer tax? Is there enough to pay your attorney? Your attorney should be able to tell you exactly what will be required at closing. Without knowing all the details of the transaction it really is impossible to tell you if you will get money or need to bring it, a bank check is a better idea than cash!
1 vote
Weichert Rea…, Agent, Watchung, NJ
Mon Feb 27, 2012
Did you sell? Did you buy another property? If not would you kindly tell us why not? Regards,
0 votes
Scott Godzyk, Agent, Manchester, NH
Wed Sep 22, 2010
Before entering into a purchase agreement, you need to assess what you owe including mortgage payoff, exactly what taxes you owe or are paid, typical closing costs, attorney costs, any transfer taxes, deed prep etc. Than you need to assess what you will get for your home to know you have enough to pay these costs or you have enough in savings to cover your short fall. you do not want to enter into an agreement without knowing these items FIRST. This is where most sellers get in rrouble, the money they are trying to save from paying a commission are lost in increased costs and a potential lower sales price that would have moe than covered teh commission and included all the services for you.
0 votes
Ian A. Wolf, Agent, Morristown, NJ
Wed Sep 22, 2010
Aside from any liens that need to be satisfied and municipal certs/CO required by your town, your only costs to sell if you are doing it without any real estate agents would typically be:

Transfer Tax - visit http://www.njhometax.com for an easy way to calculate it
Attorney fee - It is highly recommended you use a real estate attorney it will be money well spent
Deed release - typically this is only a couple of hundred dollars if that

That is basically it, but consult with your attorney and/or accountant to see if anything else may apply in your specific situation.

These monies will typically be deducted from your proceeds, so unless your expenses exceed your proceeds, you should not have to bring any money to closing. Hope that helps.
0 votes
Mary Petti, Agent, Edison, NJ
Tue Sep 21, 2010
Tycash,

Since you are doing a FSBO, your attorney should be the one handling all these questions based on what you owe on the mortgage vs what you sell it for, if there are any other judgements against you that will need to be settled before you can pass along clear title, etc., etc... Be aware tho that during the process, you get what you pay for, so your attorney is only there to make sure everything is done legally, but you won't be getting the guidance and problem solving, and keeping everyone on track that you would if you were using a Realtor.
0 votes
Keith Sorem, Agent, Glendale, CA
Mon Sep 20, 2010
TY
The great thing about selling without a Realtor is that you get to save the money of commission.

The downside is that you need to pay for advice. With all due respect to the previous posts, the ONLY person that should be advising you should have read all pertinent documents related to the sale. In this case it sounds like your attorney is the best one to offer you advice.

My one caution would be if the buyer is financing their purchase, make sure that the buyer is in fact qualified.

Good luck.
0 votes
Caroline Choi, Agent, Los Angeles, CA
Mon Sep 20, 2010
Hi Tycash, it depends on whether or not you have enough equity in your home. Usually your closing costs are paid out of the proceeds of the sale, and the net proceeds is what's leftover after everything else has gotten paid out.

If you are selling close to what is owed on the home, you may have to come out of pocket to pay for those costs.

Best of luck!

Caroline Choi
Broker Associate/EcoBroker Certified
http://www.CarolineSellsTheCity.com
0 votes
Jennifer Bla…, Agent, Basking Ridge, NJ
Mon Sep 20, 2010
Tycash, if the profit from the sale will cover your costs including mortgage and taxes and attorney fees then typically all closing costs will be paid from the proceeds of at closing before you get your check. Good luck!
0 votes
Robert Basin, Agent, Sun City Center, FL
Mon Sep 20, 2010
John's answer is good, but you really need to get this in writing, signed by both sides.

Usually your closing costs are taken from the sale amount, and will be on your HUD statement, which breaks down fees, who pays what, etc.
0 votes
Tycash, Home Seller, 07081
Mon Sep 20, 2010
I am the seller and am going to hire a real estate attorney to handle the closing. Don't have the contract written up yet, but believe my property taxes are paid through the end of the year.
0 votes
Robert Basin, Agent, Sun City Center, FL
Mon Sep 20, 2010
Who is doing the closing for you? Are you the buyer or seller? Did you have a contract with tax info included?
0 votes
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