Depending on how you choose to sell your house, different costs can appear. If you prefer to sell with an agent, by yourself, or if you are open or not to negotiations – all of these factors can influence the costs. Here are some of the costs you can expect during the sale.
Real estate agent
Sure, you will save a bit of money if you try to sell yourself, but a good realtor can help you sell your house for more money. Real estate agents in California receive 4% to 8% of the price as commission. The good news is that you don’t have to pay upfront. Agents get their commission after the house is sold.
The person responsible for the transfer of cash and title after the sale is called an escrow agent. They usually have a fee that is around 200 dollars, and that has to be paid by both the seller and the buyer in equal parts.
Even if your house insurance covers expenses in case of damage from natural causes, a home warranty covers the costs of inside repairs. For instance, it covers plumbing, heating, or home appliance repairs. It is not mandatory to have a home warranty, but it can be beneficial. By offering to pay for it, you will make your buyer feel more secure. Moreover, it is only fair to cover the expenses of potential repairs in the first year after selling. This warranty costs up to 500 dollars for one year.
Other taxes and fees
There are taxes and fees during the sale that you have to consider. For example, the title search fee guarantees that you have the right to sell your home. Or the property tax, which has to be paid once a year. If you put them all together and draw the line, you end up paying between 1% and 3% of the amount gained after the sale. These are called closing costs, and most of them are required to close the sale.