The Cost of Selling Your Home

Everyone knows about closing costs, but what are they really? Can we estimate the cost of settlement before we even get the home on the market? The answer is YES. As part of the listing presentation, your Realtor should introduce you to this topic and give you a general idea of the costs involved in selling your home. Make sure that your agent not only educates you about the price at which your home will sell, but also how much it will cost.

So, what common closing costs can you expect when you are selling your home?

1. Settlement/Closing Fee – $300-500 – This amount varies depending on the settlement company you choose. They charge this fee to sellers and buyers to complete the final closing. Your Realtor should recommend a great settlement company to you. You do not have to use the same company that the buyer does.

2. Release of Liens/Trusts – $100-200 – This money pays for the certification that the lien on the property (mortgage) has been released and the property can be transferred.

3. Recording Release – $41 – This goes to the courthouse to record the transaction.

4. Document Delivery Fees – $50-100 – This ensures that documents are transported swiftly and securely between the settlement company and the other involved parties (courthouse, bank, etc.)

5. Grantor’s Tax –  $1 per $1000 of sales price or assessed value (whichever is greater) – This is a tax charged to all sellers. It essentially grants you the privilege of selling your home in Centreville VA.

6. Regional Congestion Relief Fee – $1.50 per $1000 of sales price or assessed value (whichever is greater) – As of July 1, 2013, all sellers in the Cities of Alexandria, Fairfax, Falls Church, Manassas, and Manassas Park as well as the Counties of Arlington, Fairfax, Loudoun, and Prince William are required to pay this tax as a way to offset the cost of improving traffic congestion in the area. I think anyone who lives in Northern Virginia can attest that the worst part of living here is the traffic!

7. HOA/Condo Disclosures – $100-350 – If your home is part of an HOA or condo association, you will need to provide the documents for that association to the buyer. The fee varies depending on the association, but more and more offer electronic delivery, which will usually save you some cash.

8. County Property Taxes – varies based on date of settlement and property value – You will be responsible for the property taxes due up until the date of settlement. This amount will be credited to the buyer at closing.

9. Brokerage Commission Fees – 6% of the sale price – The agents’ commissions are typically paid by the seller at settlement. If you have hired a great agent to sell your home, they will have sold your home at top dollar and should be well worth that commission.

10. Seller Contributions – 1-6% of the sale price – Sometimes the buyer will request seller assistance to close. This is certainly not a requirement to sell your home, but when you have the right buyer, it may be something you consider.

Please note that the costs listed above are not meant to be all-inclusive. They represent the most common costs that are incurred when selling a home in Centreville VA. Don’t forget that in addition to these items, you will be paying the balance of your mortgage. Your Realtor will go over an estimated cost of settlement with you so that you can see the approximate balance you will have after the sale of your home.

Are you buying a home in Northern Virginia this year? Contact Preferred Realty Partners today to get started!

Originally posted on www.sarahknobbs.com.