When we think about selling our house, we most often think about the money coming in, not out. People who are not familiar with selling their homes can be quite surprised by the fees that they are required to pay.
However, it’s very common that there will be fees involved for both the buyer and the seller. Many of these costs you will be aware of, but there will also be hidden fees you may not have realized.
Hidden Fees When Selling Your House
You should already be aware that you may need to move out before the home is shown. This will mean you have to;
- Hire a mover
- Rent or buy someplace else
- Have the house cleaned
- Staged to make it look presentable
- Commission for your real estate agent
But there will be other things that need to be taken care of that you might assume are covered by the buyer. There will be fees you are responsible for.
Mortgage Exit Fee
When you sell your home with a mortgage, there are going to be some hefty fees for leaving early. Even though you are going to receive money to pay it off, there are penalties for leaving before your due date.
This exit fee is put in place to protect the lender from losing all the interest that you would have paid. It could add up to thousands of dollars, depending on your mortgage and how long you have had it.
A concession fee means you have agreed to pay certain costs for the buyer, often as a way of sweetening the deal. It makes the whole cost seem lower so the buyer is more likely to close.
A buyer might ask for a concession fee if they feel they will need to make some expensive renovations, or just don’t have enough cash. They can also use concessions as a bargaining tool in a buyer’s market, or to offset the cost of having to make a higher offer.
Closing costs can cover a lot of different things. These will vary depending on your own situation. However, just a few of these fees can come from:
- Credit reports
- Attorney fees
- Commission for buyer’s agent
- Title insurance
- Transfer taxes
- Title search
As you can see, there could be a long list of fees that can come out of the blue that you never considered until they are right there in front of you.
There are no shortage of papers to read, sign, finalize and every one of those comes with a fee attached. Administrative fees, processing fees, appraisals, inspections, insurance, there are any number of them.
These all need to be processed and signed and these all cost. It might not seem like much of a cost when you see two or three, but after a while, it can really add up.
There will be different forms and paperwork from every stage of the sale, right from the first decision to list your home, all the work you have done, the fees for agents, the processing fees, inspections, closing costs, and even beyond.
Fees Add Up When Selling a House
Even if this isn’t your first home sale, it can be a bit overwhelming when you start adding up how much in fees there really are. It’s best to be prepared and ask your realtor about these before you get going, just to be prepared for them all.
Selling your home is an exciting time, but it is also stressful, so go in prepared and make it a success.
Are you ready to sell your home for fast cash? Contact Black Door Homes today!