What selling costs can you expect when selling a house? | Weekly Bay Area Real Estate Tip #19
Every Tuesday, I go into detail a question I frequently get asked. Question of the week! If you are thinking of selling a house, are you curious what costs are involved? Selling your house can be very stressful thinking about moving, packing, and new surroundings, but you want to know what's even more stressful? Selling a house without knowing what the sale is going to cost you.
When you know your selling costs upfront, you'll be able to negotiate with the upper hand, knowing what your bottom line net walk away figure would be. The most important number is not what it sells for, but what you walk away with.
Title and Escrow Fees: This will vary on the sales price, but most importantly depending on which county you are doing the transaction in. If you are in San Mateo County, Title and Escrow is covered by the buyer side but if you were to sell in Santa Clara County, that will be on the seller side. You can expect around $6,000 in title and escrow fees for homes at $2M.
Real Estate Transfer Stamps/Taxes: Will vary based on county and city. For San Jose the transfer taxes are shown here. You would be looking at around $13,000 from the seller side.
Payoffs To Any Existing Loans: This is the payoff owed if there is debt on the property.
Realtor's Commission: Commissions will be around 6% of the sales price, depending on your agent. A realtor's commission is split between a buyer and a seller's agent. Buyers are represented over 99% of the time by an agent protecting their interests. Your listing agent will then be responsible for marketing the property, handling showings, facilitating the transaction to closing, and protecting the seller. A good agent will easily justify their value as even though properties may sell fast, you can always get an edge to sell for as high as possible.
When added up, your closing costs typically reflect a ~7-8% of your sales price but will vary, and I highly advise you get a seller net sheet before listing your home for sale so you'll have a realistic bottom of line figure. If you would like to receive an estimated net sheet for your upcoming home sale, we can put that together for you.
If you are tired of renting in the Bay Area, are a home owner looking to do a trade up for a bigger home, or are wanting to sell your home for top dollar, I would love to connect!
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Born and raised in the Bay Area, I spent 11 years as an Enterprise Sales Manager before becoming the Tech Realtor of the Bay Area. Having the background as a homeowner, investor, and renovator, I leverage data and insights to help my clients gain a competitive advantage with their real estate journey. Communication and knowledge is key so as long as I'm awake, you will get a reply from me! I have helped 31 families YTD for over $40MM in delighted transactions and I look forward to help you too.