Raylene Lewis
Realtor®
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Closing Costs: The Price You Pay to Sell Your Bryan College Station Home
June 10th, 2008 Categories: Selling Real Estate
I have noticed a bit of confusion recently when it comes to what a Bryan College Station Seller expects to pay when selling their home. On the last listing appointment I went to, I was surprised to here the Sellers say: “We’ve decided to list with you, but we’d like you to explain why your closing costs are higher than what the other Realtor quoted us.”
The reason I found this to be so surprising is because, for the most part, closing costs are fixed costs. I always estimate closing costs to be a bit high, because I would rather the seller be happy that the number is just under what I predicted, than have them be upset that their costs are more than what they expected them to be. I believe the more information you are able to provide your client, the better able they will be to make the decision that is right for them.
So, as a Seller, what are your closing costs? I’ll give you 2 ways to estimate what your total costs will be. The easiest way to get a good ball park estimate is to take your sales price (remember sales price, and not list price) multiply it by 7% round up if you are close, down if your not, and add between 1,500 & 2,000 dollars. Why 7%? Because the Seller’s title policy amount, which is regulated by the State of Texas, is roughly 1% of the sales price. The extra $1,500 - $2,000 covers small misc. repairs the Buyer might ask for, plus a home warranty and title company fees.
The second way to estimate your closing costs is to itemize everything out. Below are still approximates but more detailed.
- Realtor Fee: 6-7% of the sales price
- Title Co. Fee: approximately 1% of the sales price
- Title Co. Escrow Fee: $100.00
- Home Warranty: $450.00
- Title Co. Documentation Preperation: $300.00
- HOA Transfer Fee: $50.00
- Per Diam Interest from Jan 1st to Close: 2.67% of the sales price divided by # of days at the property
- Title Co. Recording Fee: $100.00
- Title Co. Courrier Fee: $50.00
- Misc. Buyer’s Repairs: $500.00
- Tax Certificate: $10.00
- Guarantee to the State of Texas $1.00
- Remainder of Your Loan Payoff $ UNKNOWN
When you get your total amount of closing costs, including your loan payoff, subtract the total amount of cost from the sales price to determine what amount you will walk away with. This should give you a good estimate of what it will cost to sell your home.
Remember:
- Once you get an acceptable offer, you need to add the expense of Buyer’s Closing costs (Not to exceed 3% of the sale price or it won’t be approved most lenders) if you have agreed to pay that amount in your contract.
- If you sell your home, and you can get it to close and fund before the 15th of the month, you will be saved from having to make that month’s full payment.
- Although you have to pay your taxes when you close on a property, even though the money is held in escrow with your lender, your lender should mail you a check after closing that will contain the full amount of money in your Escrow Account.
I use the 7% scenario for my sellers also and it works. It is very important to be very clear and make sure the seller understands what you are trying to convey. Great information.
Good info. Sellers please remember that we, as real estate agents, can only estimate, get pretty close, when figuring up all that is included in closing costs so add in a little margin for incidentals. Thanks Raylene!
An experienced agent should be able to tell you all your costs for selling your home at the time you negotiate a contract. However, your agents estimate will only be able to estimate what the taxes will be, your payoff amount will change daily and is always different from what your mortgage company tells you over the phone. Make sure to also add a little bit into your estimate for repairs. I tell sellers to always figure on $500 for repairs just in case something comes up on inspections. Also, depending on the attorney and which title company you use, those fees may change as well. University Title Company is the most expensive title company to use in town with $150 escrow fees. Aggieland is the cheapest with $95.00 escrow fees. The insurance amount will the be same everywhere as it is regulated by the state of TX.