Before you sell your home in El Segundo, you may want to figure out how much the sale will cost. While the cost of selling a home can vary, there are some ways you can estimate the final expenses.
Some costs are upfront while others can be taken out of the profit of the house during the sale. All of them may need to be taken in consideration when pricing your home, but you have control over a lot of it.
1The Real Estate Commission Fees
Usually realtor fees for a home sale will range between 5% to 6% of the homes value, but this can be negotiated. Sometimes you may be asked to cover the buyer’s real estate fees as well. These are the fees that cover things like listing the home, staging it, showing it, and completing the paperwork associated with the sale.
2The Mortgage Fees
You can’t assume that the mortgage is going to be paid off with the statement balance from your account. Sometimes there are fees for closing a mortgage early.
Sometimes the final balance will be slightly more than what you expect to account for additional accrued interest. Call your mortgage servicer to find out the exact payoff amount.
3The Repairs and Improvements
This is really the area you can end up spending either the most or nothing at all. If things need to be repaired around your home, then the cost of those repairs will factor into your home sale. If you don’t want to do those repairs yourself, you can consider giving a buyer a credit on the sale price to compensate.
With improvements, your real estate agent can tell you what’s worth it. If putting in a $10,000 deck will increase your home’s price by $15,000, it could be worth it. If it will have no impact on price, it’s not.
4Property Taxes and Additional Fees
At closing, you’ll also need to pay any remaining property taxes as well as things like the escrow closing costs, legal fees, and so forth.
Usually these costs are taken out at the escrow company: the buyer pays for the home, the escrow company takes payment, taxes and fees are deducted, and then you get the remaining profit.
So you don’t need to worry about paying these fees in cash but they will factor into your profit. They usually aren’t all that substantial, ranging from a few hundred to a few thousand depending on your property taxes.
5Buyer Credits and Concessions
As mentioned above, sometimes you can just give buyers a credit for repairs that are necessary. Sometimes buyers can also ask for concessions such as money to buy new appliances. It’s up to you whether you want to offer these types of concessions, but it can make it easier to sell an otherwise difficult to sell home.
As you can see, many of the costs related to selling a home are either based on the home’s price or flexible, so you do have a lot of room in which to work. If you want to add your home to the list of El Segundo homes for sale, but aren’t sure how much it will cost, a real estate agent can help.
If you have questions about selling your home in El Segundo, give John a call at (310) 350-4240.