Hidden Costs You Should Know About When Selling

Walking away from selling your house with less than you expected is one of the worst feelings in the world. Every nickel counts of that sale to go towards your next home. To make sure you don't face any hidden surprises on closing day is to ask your real estate agent for an estimated net sheet prior to accepting an offer. It won't be 100% accurate, but it will give you a decently fair picture of what you should expect. Here are some items that you should pay special attention to:

1.Commissions

     It is required for your real estate agent to disclose their fees in writing, but if you have negotiated a lower rate or some unexpected expenses come up, this amount could rise. Be sure to carefully look at the commissions amount for any erros at the end of the sale.

2. Property Taxes

     If you are closing your transaction around the time that property taxes are usually paid, it would be helpeful to bring a receipt to the escrow officer so you don't pay the same tax twice. You would surely receive a refund, but the proocess might take months.

3. Title Insurance

     If you have refinanced your home in the past two years, you may well be qualified for a discount on your title insurance premium. If you are being charged for full price, be sure to ask for a re-issue rate.

4. Buyer Closing Costs

      If you have agreed to pay for the buyer's closing costs, be sure to place a limit on how much you will pay. Without a cap this can take the form of a blank check allowing the lender to charge fees they normally would have waived if the buyer was paying the costs.

5. Transfer Fees

     In many states a transfer tax is charged when a home sells. Be sure to be clear of the amount being charged.

6. Notary & Document Preparation Fees

     The escrow company charges fees for organizing your documents. To make sure this escrow company is competitive with other companies in the area, call their competitors.This can really be beneficial when the closing will be handled by a lawyer, out of area firm, or a local real  estate broker.

7. Refunds

     Don't forget your refunds! These could include money being held by the lender to pay for annual tax and insurance payments. While they are often credited in your final payoff, sometimes they won't. Also talk to your local service providers, such as your gas company, electric company etc. for any money you may have coming back.

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