Selling a home can be as involved a process as buying one. There are many things to consider, one of which is closing costs.
Remember that in terms of the entire home buying transaction, sellers have less opportunity to negotiate for lower costs on their end as compared to the buyer.
Many closing costs for sellers include taxes and fees that are dictated by the state in which the home is being sold. These are typically set in stone by law.
There are also transfer taxes, title fees, and escrow fees to consider.
You can utilize a seller closing costs calculator to determine what the amount looks like, and consider the following to help reduce your closing costs.
Negotiate Agent Commissions
One of the biggest expenses for a home seller is the money owed to real estate commission on both sides of the transaction. It is also the most opportune place for negotiating and lowering your costs.
Sellers typically pay a 6 percent realtors’ commission, which is split 50/50 between the sellers’ and buyers’ agents.
It’s worth it to chat with your realtor and see if this fee can possibly be negotiated to help you save a little money.
Put Your Home Up For Sale By Owner
You can completely eradicate any type of commission owed to a real estate agent by putting the house up for sale by owner.
Sometimes an attorney is required to be present during selling proceedings. This can help with complicated and nuanced deals, with the attorney working in your best interest.
Do your research and shop around for an attorney who has a good reputation and reviews. Get someone who knows the market and has a depth and breadth of experience.
Also compare rates among these attorney fees to make sure you aren’t paying more than is necessary.
Increase Your Sales Price
After calculating potential closing costs, you may want to adjust the price you’ve put the home up for on the market.
Adjusting the price within reason of the current market but adding in that little extra to help cover your closing costs can make a big difference.
Ask the Buyer to Cover Costs
You can also work the buyer covering costs into negotiations to cut down on what you’ll owe upon selling.
This strategy is often successful in a sellers’ market, an environment in which buyers are competing to purchase your home. Their agreeing to help with closing costs can be a major way for them to stand out among other potential buyers.
Consider Home Improvements
If you take care of major improvements ahead of time, that can help raise the worth of your home and allow you to set a higher selling price, increasing your overall profit.
If a buyer does not see a potentially huge repair project when considering a house, they are less likely to try to negotiate a lower price to help make up for any costs they could incur upon doing the repair themselves.