The Havasu real estate market is a business. With every real estate in Lake Havasu transaction, you incur costs. When you bought your home, you paid certain closing costs. Well, sellers pay closing costs, too. However, they differ from what buyers pay. What seller closing costs should you expect to pay?
Seller Closing Costs
Real Estate Commissions
Real estate agents work on commission. They don’t get paid until the sale of your real estate in Lake Havasu is final. Commission usually totals around 5-6% of the sale price. The exact percentage should be listed in your contract with your agent. For a $250,000 home, that can total as much as $15,000. The seller pays the commission from the proceeds of the sale. Once a check is cut for the commission, the listing agent divides it up with the buyer’s agent.
The goal of a home sale is to pay off your mortgage and, hopefully, put a few bucks in your pocket for another home purchase in the Havasu real estate market. Unfortunately, that isn’t always the case. Prorated interest, a home equity loan, and/or a prepayment penalty fee must also be paid from the proceeds of your sale. Check to see if your mortgage terms include a prepayment penalty. If your final sales price comes in under your total costs, you may have to come to the table with some money.
Taxes and Fees
Sellers are responsible for the property taxes prorated up to the day of closing on their real estate in Lake Havasu. Sellers must also pay any transfer taxes and recording fees due from the sale. Usually, sellers also pay the buyer’s premium for their title insurance. If you involve your attorney in your home sale, you’ll need to pay their fees as well.
Finally, the seller pays for any past due HOA fees as well as the prorated amount due up until the day of the final sale and escrow fees. You’re also responsible for paying any liens against the property before the final sale can go through. Don’t forget the cost of repairing or replacing any items named as part of your sales contract and inspections, if required.
Some of these costs come out of your pocket. However, most of these seller closing costs will be paid from the proceeds of your sale. That changes how much you can expect to receive after all is said and done. Moral of the story? Don’t count your chickens before they hatch. In other words, if you owe $100,000 on your real estate in Lake Havasu and sell your property for $250,000, don’t be surprised that your final check after expenses are paid comes in under $150,000. When you’re ready to sell your property, contact me.
Alexis Steel – 928-303-2199
Keller Williams Arizona Living Realty
Search homes at: www.TheHavasuHome.com