What selling costs
About 7 per cent, and here is where every point of it goes.
| Comes off the price | Goes to | On $615,000 |
|---|---|---|
| Sale price | You | $615,000 |
| Listing commission2.5%This is my fee, and it is negotiable. It is the first line rather than the last because it is the one you are entitled to argue about. | Me | −$15,375 |
| Buyer's agent compensation2.5%Increasingly negotiated between the buyer and their own agent rather than paid by you. We will decide what, if anything, you offer before the listing goes live. | The buyer's broker | −$15,375 |
| Title insurance, owner's policy0.55%Customary for the seller here. Rates are filed with the state, so this one does not vary between companies. | Title company | −$3,383 |
| Escrow and closing feesSplit with the buyer in most contracts here. This is your half. | Title company | −$950 |
| Transfer and recordingDeed recording and the release of your existing mortgage. | County | −$240 |
| Prorated property taxYour share of the year up to closing. Varies enormously with the date; this is a mid-year figure. | County | −$1,850 |
| Repairs after inspectionThe line everybody forgets. Almost every deal has one, and $2,000 to $6,000 is the usual range. | Contractors | −$3,500 |
| Staging, photography, cleaningI pay the photography. Staging and the deep clean are yours, and both are optional in a way the photography is not. | Vendors | −$1,400 |
| Home warranty for the buyerOften asked for and often worth conceding. Sometimes worth refusing, and I will say which. | Warranty company | −$650 |
| Total costs | About 7% of the price | −$42,723 |
| You walk away with | Before any mortgage payoff | $572,277 |
The three that surprise people
- Prorated property tax
- Your share of the year up to closing. Varies enormously with the date; this is a mid-year figure.
- Repairs after inspection
- The line everybody forgets. Almost every deal has one, and $2,000 to $6,000 is the usual range.
- Home warranty for the buyer
- Often asked for and often worth conceding. Sometimes worth refusing, and I will say which.
None of these appears in a listing presentation, and all three turn up on the settlement statement. Repairs is usually the largest of them and the one nobody budgets for.
Get this with your numbers