Jesus M. Fernandez, REALTOR® 786-553-7530
Morris Williams Realty: 888-326-3949
There is no town like my hometown! I have it all here!
SELLING COSTS
Understanding and anticipating your selling costs, should not be overlooked!
Sellers often forget to account for the costs of selling. If you plan to use the sale proceeds to buy your next home, those costs can reduce what you have available to purchase. Below, learn why selling costs matter.
When you sell, apart from any expenses incurred to fix, paint, or improve the property, you will have other selling expenses Plan for them so you are not surprised at closing. One of the largest costs sellers overlook is the property-tax credit to the buyer, especially on a sale later in the year. The next major cost is usually the broker’s commission, which is negotiable. Some other selling expenses can also be negotiated with the buyer. Below, you’ll see what you can negotiate with brokers and buyers, along with the pros and cons of each option.
Real Estate Brokerage Fees
As a property seller, you have several options when selling a property. You can sell it on your own, hire a licensed real estate broker, or auction it with a real estate auctioneer.
Most property sellers—roughly 93%—use a real estate broker, and there are good reasons for that. Selling well takes specialized training, knowledge, expertise in neighborhood sales trends, and most importantly, negotiating skills that many property sellers do not have.
Brokers charge a fee for their services, which may be a percentage of the selling price or a flat fee.
Is 6% of the sales price the standard selling broker's fee?
Understanding Real Estate Broker Fees
Real estate broker fees are not standardized because of antitrust laws, so they can vary significantly depending on the broker and the services provided. For example, discount brokers may charge a low commission, such as 1%, or a flat fee to list a property on the MLS with limited services. Full-service brokers typically charge higher fees but offer comprehensive support. The fee you agree to directly affects the scope of services, the broker’s ability to incentivize other agents, and, potentially, how long it takes to sell your property.
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Our Commitment to You
Our brokerage offers competitive and flexible fees tailored to your unique needs. We understand that every seller’s situation is different, and we customize our services accordingly. By choosing us, you’ll receive exceptional value through a comprehensive suite of services designed to maximize your success. We’re eager to discuss and negotiate a commission structure that is fair, transparent, and focused on achieving your goals.
"An investment in knowledge pays the best interest."
-Benjamin Franklin
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Closing Costs Explained
Your other selling costs are related to items that either you or the buyer agrees to pay as part of the sale and purchase agreement. These will depend on the type of agreement used in the sale. The As-Is sale and purchase agreement, which is typically used in most transactions, does not set aside any money for repairs if deficiencies are found during the buyer’s inspection, unless that is specified in writing. The Residential Contract for Sale and Purchase, on the other hand, has provisions that allow you, as the seller, to set aside a dollar amount or a percentage of the sale price toward general repairs, the treatment and repair of damage caused by wood-destroying organisms, and costs associated with closing open permits.
There are advantages and disadvantages to using either of these contracts when selling your home. We recommend that you speak with an attorney who can explain the legal pros and cons so you can decide which contract type to use in your sale.
What do sellers typically pay for in a transaction?
Again, the selling costs will depend on the type of contract used and what you can negotiate with the buyer. Typically, the seller pays for the documentary stamp taxes (if any), the estoppel letter, if the property is governed by a homeowner's association or condo association, the recording and other fees needed to cure the title, any attorney fees or title company fees you agree to pay, and /or on behalf of the buyer, as stipulated in the sales and purchase agreement.
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You may also need to pay for the following, if its part of the terms agreed to with the buyer:
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The municipal lien search.
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The owner's policy and charges.
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The owner's title policy premium.
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We can sort it all out with you, so you can decide what you are willing to pay for, what is customarily paid by the seller and what you want the buyer to pay. On average a seller's total closing costs, including commission, is more or less, 8% of the sales price.
Who pays for the property taxes when a property is sold?
Property taxes are prorated from January 1st, to the day of closing and are typically paid by the seller, as a credit to the buyer. The closing agent will make the final calculation prior to closing, and the amount will appear in the seller's settlement statement, which shows line by line all your expenses.
What can I negotiate with the buyer to lower my selling cost?
You can negotiate just about any selling costs and pass them on to the buyer. However, it’s important to consider that buyers typically work with limited resources when purchasing. Asking the buyer to pay for part or all of your expenses during the negotiation stage usually results in a failed negotiation. Only in extreme situations—where the seller was in deep financial trouble and the buyer really wanted the property—have we seen the buyer pay for part or all of the seller’s expenses.
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We can advise you during the negotiation stage on which costs you can ask the buyer to pay without jeopardizing your sale.
Call us for a private consultation, about your personal selling situation.
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