Jesus M. Fernandez, REALTOR® 786-553-7530
Morris Williams Realty: 888-326-3949
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SELLING COSTS
Understanding and anticipating your selling costs, should not be overlooked!
Too often, many sellers forget to take into consideration the costs of selling, which can impact their ability to purchase their new home, if they will be using the proceeds of the sale to purchase. Learn below, why you need to consider your selling costs.
When selling your property you will incur certain selling expenses, which should be taken into consideration to avoid any last minute surprises. Perhaps, the largest expense most sellers overlook is crediting the buyer for the taxes due,if they seller later in the year. Typically, the second expense will be the broker's commission, which is negotiable between you and the broker. Other selling expenses are also occasionally negotiable, between the seller and the buyer. You'll learn below, what you can negotiate with brokers and buyers, so you have a better broader understanding of your options and the pros and cons of each.
Broker's Fees
As a property seller, you have several selling options available to you when selling. You can sell the property on your own, hire a licensed real estate broker, or auctioning your property with a real estate auctioneer. Most property sellers, or roughly 93% use a listing broker and there are good reasons for that. It takes time, specialize training, knowledge, expertise of neighborhood sales trends and negotiating skills; which typically most properties sellers don't have. Brokers charge a fee for their services, which can be in relation to the selling price of the property 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 due to anti-trust laws, allowing fees to vary significantly based 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 impacts the scope of services, the broker's ability to incentivize other agents or buyers, and potentially the time it takes to sell your property.
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 either you or the buyer agree to pay, as part of the terms of the sales and purchase agreement. These will be depend on the type of sales and purchase agreement used in the sale. The As-Is sales and purchase agreement, which is typically used in most transactions, does not set aside any monies for repairs, if deficiencies are found during the buyer's inspection, unless specified in writing. The residential Contract for Sale and Purchase on the other hand, has provisions in which you as the seller can choose to set aside a dollar amount or a percentage of the sales price towards general repairs, the treatment and repair to damage caused by wood destroying organisms and costs associated to close open permits.
There are advantages and disadvantages related to the use of their one of these contracts when selling your home. We can review the differences, 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.
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.
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, its important to consider that buyers typically are working with a limited amount of 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.
We can advise during the negotiation stage, as to 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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