Pest-control inspection by a specialist who prepares a report on the presence or absence of wood-destroying pests such as termites, carpenter ants, and powderpost beetles. Included in the report is documentation of any damage they may have caused.
Other inspections may determine whether the home is structurally sound or contains any environmental hazards (e.g., asbestos, lead-based paint, radon, or mold).
Homeowner’s insurance protects the property owner from losses due to fire, theft, or other catastrophes. Mortgage lenders usually require such insurance, since the property itself is their security against the loan. Specialty insurance protects against such risks as flooding and earthquake damage that aren’t covered by conventional homeowner’s insurance.
Closing agent fee: The closing agent (a real estate attorney, title company, or escrow company) makes sure all documents and money related to the sale are properly handled, notarized, and disbursed.
Other closing costs include attorney fees. Estimate 1%-1.5% of the selling price. (For a $100,000 home, that will come to $1,000-$1,500.) Closing costs also include:
- Title search to uncover the history of ownership of the property and any liens, encumbrances, encroachments, or easements it may have.
- Title insurance to protect the lender and property owner from claims against the ownership of the property that were not disclosed in the title search report.
- Survey to identify the physical boundaries and characteristics of the property, including any structures, wells, fences, and utility easements.
- Recording fees paid to the government recorder’s office that maintains the official public records of property ownership.
Prorated property taxes and service fees, such as trash collection.
Transfer tax is imposed by some government authorities when a property changes ownership. They’re sometimes referred to as “doc stamps” because of the postage-like stamps that are affixed to a document to indicate payment of the tax.
Buyer’s mortgage loan fees in most states are traditionally paid by the seller. They’re estimated at 1%-1.5% of the loan amount. (On a $90,000 mortgage, figure it’ll come to $900-$1,350.)
The real estate brokerage commission – usually a percentage of the selling price – can easily be your biggest expense.
- If you list your home with a real estate agent,expect to pay 6%-7% of the selling price ($6,000-$7,000 for a $100,000 home).
- If you sell the house yourself but accept the offer of a buyer brought to you by a real estate agent, you’ll probably pay half the fee, or 3%-3.5% of the selling price ($3,000 to $3,500 on a $100,000 home).
Although you can limit your selling costs by stipulating in the sales contract the maximum amount you’ll pay toward the buyer’s mortgage costs and other closing fees, your agreement with the real estate brokerage is a separate contract.
Of course, you can advertise the home and find a buyer yourself, and pay nothing to real estate agents. But as you can see, selling your home is still an expensive and detailed undertaking. If you don’t have any cash to spare, and you need to sell your house fast for cash, consider a private home sale to Mitch and Matt Painter, the Cincinnati Property Twins. Complete the form or call/text 513-445-2274 to receive a ballpark offer.