Did you recently sell your real estate in Lake Havasu? Did you sell it for more than you owed? Congratulations! Before you go spending your mounds of cash, take a moment. Even though you sold your property on the Havasu real estate market for more than your mortgage value, you may not walk away with as much money as you thought. Sometimes, you might even owe a little. How can that be? Let’s follow the Lake Havasu home sale money trail to find out.
Lake Havasu Home Sale Money Trail
What Happens at Closing?
First, all money received at the close of a Lake Havasu home sale goes into a third-party account. In Arizona, that third-party is usually the title company. At that time, they pay off the remainder of the current mortgage on your real estate in Lake Havasu. Then, they pay off other expenses tallied up during the closing process (real estate commissions, closing costs, taxes, etc.). Finally, whatever’s left gets handed over to you. However, if there ends up being a deficit between money received and money owed, you’ll have to come up with the difference.
Yes, real estate commissions come out of the proceeds from your Havasu real estate market sale. Percentages vary but usually run around 5-6% of the sale price. Your listing agreement should include how much your agent receives. The title company cuts a check for the appropriate amount of total commissions for both the seller’s agent and buyer’s agent. This check goes directly to your agent or their brokerage. After that, your agent or their brokerage cut a check to the buyer’s agent for their portion of the commission.
Even though the bulk of closing costs usually fall on the buyer’s shoulders, sellers also incur closing costs of their own. These usually run around 1-3% of the sale price and cover things like recording fees and title insurance premiums. Sometimes, a seller may agree to pay all or some of the buyer’s closing costs in order to seal the deal on their real estate in Lake Havasu. In that case, those fees also come out of your sale proceeds. In Arizona, this can be another 2% or so.
And don’t forget about property taxes. The government definitely won’t. Whatever is owed up to the date of sale comes out of your pocket. The buyer must pay the rest.
Alexis Steel – 928-303-2199
Keller Williams Arizona Living Realty
Search homes at: www.TheHavasuHome.com