Your total net proceeds are reduced by a number of costs that are typically associated with a property sale. It’s important to know the basics about these. It is recommended that you sit down with a real estate agent who can walk you through net proceeds estimate to determine your equity at close of escrow.
1/2 of title & escrow
Expect to pay for half of the transfer taxes, title insurance, notary fees and other miscellaneous costs associated with transferring the title.
Agent commissions
As the seller you will pay for the listing agent and buyer agent commissions. This is typically a split of 6% with half going to each agent.
Loan Payoff
Any outstanding mortgage balance you may still carry on the property will need to be satisfied at closing.
Property Taxes
Your tax responsibility will be prorated to the date of sale, and any outstanding balance will need to be paid in order to transfer the title and record the sale.
Inspections
Expect to have pest and roof inspections performed on the property, as well as optionally a full home inspection as part of the sale. While this can vary, typically this is paid for by the seller.
Repairs
Regardless of the type of offer you have accepted, you may still be asked by the buyer for home repairs as part of the sale once the results of the inspections are known. Some repairs are required by lenders prior to funding.
HOA Fees
Typically prorated, any outstanding balance up to the date of sale will need to be satisfied prior to the close of escrow.
After the closing
Despite closing escrow marking the end of the property sale process, it also marks the beginning of an ongoing relationship. Keeping in touch with the agent allows you to continue to use this valuable able resource of information whenever you need.
An ongoing relationship with my clients
A fantastic agent focuses on a continuing relationship that offers you convenience, opportunity and value. You can always rely on your agent after the closing to help you answer questions about homeownership, provide resources, offer advice, and provide tools to ensure your home ownership experience is a positive one.
Your referrals are key!
Maintaining an ongoing client relationship is just part of an overall commitment to providing a level of service well above and beyond expectations. Your agent relies on word of mouth referrals for additional business, and good referrals allow the agent to devote more time to helping clients and less time to finding them. If your experience is amazing, be sure to tell your friends!