Wilmington Real Estate - Sea Coast Realty

Bailey & Company Blog

Making the Most While Selling!


For Sale, Listing, Selling Your Home, Seller's Net Sheet, Profit, Mortgage, Home Sale
Posted: March 06, 2018 by Bailey Gordon

If you've thought about selling your home, then you've probably thought about the payday at the end of the transaction.  Whether it’s your down payment money for your next home or just money to take away from the sale, it’s important to know how it all breaks down.  

We've been getting a lot of inquiries about the amount of money it takes to SELL your home so we thought it would be a good idea to Blog about what you can expect to spend throughout the process!


Knowing what a sale will cost you ahead of time will certainly reduce any confusion on closing day!

 

  • Real Estate Commissions - As the Seller you're responsible for paying the commission to be split between the Buyer's Agent and your Listing Agent. 

 

  • Mortgage Payoff – Be prepared that some of the proceeds of your home sale will be used to pay off your existing mortgage. Take the time to check your latest balance and plan to add in any prorated interest you've accrued to the total.

 

  • Transfer Tax - NC requires you to pay transfer taxes on the sales price of the home.  The amount is the sales price divided by 500. 

 

  • Portions of Closing Costs or Credits to the Buyer - in negotiating the sale of your home, you may have agreed to pay all or a portion of the costs associated with closing the deal. Some of these costs may include HOA fees, property taxes, attorney fees, transfer taxes and title insurance. You also may be asked to pay an escrow fee, a brokerage fee, and a courier fee. Altogether, closing costs can range from 2 percent to 4 percent of the selling price. While closing costs are typically the responsibility of the buyer, don’t be surprised if you are asked to contribute to this expense.  Many of the above fees are negotiable, and it is unlikely that a seller will be responsible for all of these. Still, it helps to be prepared.

 

  • Home Warranty for the Buyer - Whether requested by the buyer or a decision made to entice buyers, this service contract that covers specific repairs to the home within a set time frame is usually around $500.00

 

  • Utilities - If you're planning to move out before you sell your home you may want to continue to pay for your heat/air and electricity. Showing your home at its very best will be made much easier with lighting and a comfortable room temperature! Welcome potential buyers inside rather than distracting them with darkness and extreme temperatures!


Now let's take a look at some of the fees throughout the listing process that you can expect to pay!

  • Painting/Repairs - Keep in mind that to make money, you have to sometimes spend money. Adding a fresh coat of paint and fixing minor repairs before listing can help you present your home in a more desirable manner, command a higher asking price and avoid additional negotiations.

  • Staging – Whether you’re moving out early or staying in place until your home sells, you may want to invest a little bit of money into staging your home. Having a designer stage, organize and declutter your home can go a long way toward having it show better and sell quickly at a higher price.

  • Landscaping - Curb appeal is a big part of selling your home, so you may want to consider putting a little bit of time and money into having a landscaper clean up your home's yard and exterior. Making a good first impression upon pulling up to your home can set the stage for what's inside! It’s also amazing what a difference a little pressure washing can do for exteriors, driveways and sidewalks!

  • Pre-Inspections - Most often buyers will want to do their own home inspection when they purchase, but it's not a bad idea for a Seller to pay for an inspection before opening their home up to Buyers, just to be aware of any underlying issues and repairing them before showing the home.


Lastly, the best question you can ask… how quickly do I get my money?  Most buyers in today’s market will be obtaining a loan to purchase your home.  Once their loan has been fully approved and funded, the attorney will record the sale with the Register of Deeds in the county of the home you’ve sold.  Once the sale has recorded, the attorney will payoff your mortgage and pay all professionals associated with the sale.  Your proceeds will then be wired to your bank account or a check will be made out to you.  So your mortgage is now paid off and your account will be closed, at that time, the mortgage holder will write you a check for the remaining money in your escrow account (this is the money you’ve been paying in towards taxes and insurance).  You can expect that check within 30 days after closing.

Hopefully, with these costs in mind, you’ll be able to avoid any surprise expenses when the time comes to list your home!  When working with Bailey & Co. we will prepare all these numbers for you with an estimated seller’s net sheet to show you, exactly what you can expect to walk away with.

If you’re curious about our reference to staging and how that can help your home sell faster and at a higher price, stay tuned for our Bailey & Co. Staging Blog next week!

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