When you’re buying or selling a home, you probably already know that there is more involved than simply the purchase price. If you’re the seller, the good news is that there are far fewer expenses than if you’re the buyer – but there are still a couple of things to keep in mind.
Here’s how to calculate what you’ll be able to walk away with from the settlement table:
-The first thing is the transfer tax. This is typically split evenly between the buyer and seller, and it usually costs the seller 1% of the purchase price.
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-It’s also important to set aside a few hundred dollars for township certifications. This includes the water cert, sewer cert, and tax cert. The fees can vary significantly by township, so your real estate agent and conveyancer can help you to better estimate this.
-Depending on where you live, the seller may also be responsible for purchasing a “U&O” (Use and Occupancy) permit. And if you’re in a condo community or a part of a homeowners’ association, a resale certificate and other documents might need to be purchased as well. Again, a few hundred dollars should account for all of these certificates and permits, but your agent can help to narrow down your specific costs.
-Another thing to consider is negotiating the home inspection, if you haven’t yet done so. It’s the home inspector’s job to find any flaws or necessary repairs in your home – and as frustrating as this can be now, you’ll surely appreciate it when you’re on the buying side. Since no home is perfect – not even new construction—there will typically be a negotiation between buyer and seller which may result in the seller making repairs, at their own expense, prior to settlement, OR crediting the seller money to make the repairs themselves. While this isn’t a universal occurrence, some level of negotiation happens here in the vast majority of deals, so it’s important to consider.
-And lastly, of course, is your mortgage payoff. Whatever you owe on your mortgage will be deducted from the proceeds at settlement.
If you have any questions at all regarding how much it might cost to sell, be sure to reach out to your EveryHome agent for assistance!