If you are about to sell your house, you might want to learn about the expenses associated with selling your home on the traditional market. Because every step in selling your home comes with a cost, you must be aware of these costs and have realistic expectations before moving forward. Keep reading to know more!
6 House Closing Costs You Need To Know Before Selling Your House
- Mortgage Balance
A mortgage balance is the amount of money that you still owe on your home. This amount will need to be paid off at closing before getting your hands on all the cash from selling your house. Remember, though, that sometimes you might not have enough money to cover it, so you will either have to pay it hard cash or take out a new mortgage.
- Commissions & Fees
Selling a house is always expensive, and you will always have to pay a commission on your sale. Most often, these commissions are around 6 or 7% and deducted from the net proceeds of your sale. However, there are other types of fees that you might be charged as well, such as title insurance costs, document preparation fees, recording charges, etc.
- Taxes & Document Fees
Any transfer or document fee that is associated with the sale of your home will be paid by you, as well. That includes property taxes not already paid up to date and any other government fees that might apply according to your state’s laws.
- Title Insurance
The title insurance is a fee you will need to pay to ensure that the buyer gets a clear and marketable title when they purchase your house. That is because there are situations where you might have an unknown lien or claim against your property, which needs to be addressed before the actual sale takes place. If this happens, you might be able to negotiate the cost with your buyer or even eliminate it.
- Legal Fees
You will also have to pay legal fees associated with closing your home sale. It is possible that these fees can be worked into your mortgage, so don’t hesitate to ask. However, most often, you will need to pay them in cash at closing, and they are usually around $1000 to $2000.
- Other Expenses
In addition to the above-mentioned expenses, you might also have other closing costs. These can include anything from paying for pest inspections to inspections and repairs of things like HVAC systems, plumbing, or electrical problems in your home, which are all sure to add up quickly.
Selling a house is never easy, but it is manageable if you know what to expect. By understanding the fees and costs involved with selling your home, you can prepare yourself for any potential surprises.
OC Home Buyers Can Help You Sell Your House Hassle-Free
At OC Home Buyers, we are a family-owned and operated business in Orange County, California. We buy houses in Orange County, CA, renovate and resell them to families looking for the perfect home. Our goal is to help you sell your house hassle-free, saving you time and money in the process. It doesn’t matter if your property needs repairs or a fresh coat of paint; we will buy it just as-is.
With us, the process is as simple as snapping your fingers. You just need to give us a call and provide us with the address of your property and your contact information, and we will get back to you with a fast cash offer. We promise no pressure or hassle, so you can sell on your terms. Plus, when you work with us, you don’t need to wait 6 – 12 months for your house to sell; we are direct homebuyers and can close on your sale when needed.