You’ve likely heard about closing costs when you sell your property, but what are folks talking about?
Closing costs refer to all of the fees that you must pay at the closing table. Depending on where you live, the fees and costs can vary.
But generally, closing costs include, but are not limited to:
- Notary fees
- Transfer Costs
- Transfer Taxes Appraisal Costs
- Inspection Fees
- Origination Fees
- Recordings Fees
- Title Insurance
- Underwriting Fees
- Bank Fees
- Courier Fees
- Wire Transfer Fees
- Liens against the home will need to be paid to clear the title
- Credit Report Fees
- Attorney Fees
- If applicable the balance of your mortgage or loans against the home
- Possibly repairs or pest control if this has previously been agreed upon
- PLUS COMMISSIONS!
Who’s Paying Commission at Closing?
While the buyer will usually pick up several of these, it is important to note that the seller pays 100% of the commission when selling a house in Oklahoma City.
This will be about 6% of the final sale price.
For example, if you sell your property $120,000, the commission will be around $7,200.
Other than your possible mortgage balance, this is by far the highest cost when it comes to costs at the closing table.
Negotiating the other costs during the sale process is becoming increasingly popular.
To lure in more buyers, sellers are more frequently picking up the tab when it comes to the closing costs.
As a seller, you will also need to pay your share of the year’s property tax until the closing date.
Any HOA fees or other community costs should be prorated and paid at this time as well.
Who is Paying the Closing Costs?
The closing cost amount is negotiated between the buyer and seller.
Often there is a percentage the seller agrees to pay towards the closing costs.
For example, you can offer to put $5,000 towards closing to help relieve some of the costs for your buyer.
Overall, paying these subsidies are often a small price to pay to bring buyers to the table!
What About Repairs?
This is another one that is negotiated between the buyer and the seller. If the home needs some obvious repairs, the seller will often take care of these before putting their home on the market.
However, if an inspection shows additional repairs are needed, a buyer may make his offer contingent on repairs being made. A buyer and seller can work this out before going to closing.
Real-Life Example:
A few months ago, we sold a property for $135,000. Great right?
Well, that’s not the full story.
You see, the realtor’s commission was 6%. Then add the cost to fix it up plus closing costs.
Here’s that breakdown:
- $8,100 – Realtors Commission
- $1,200 – Title work
- $700 – Taxes
- $12,000 – Roof replacement (this was a punch in the gut)
- $10,000 – Carpet, paint, etc.
When you add it all up, we spent $32,000.
That means we took home $103,000, not $135,000.
Now, that might not sound like a bad idea. Maybe those numbers look good to you. If they do, I’d suggest you fix the property and sell it.
But if they don’t, you might consider a second option.
Can You Avoid These Costs?
Yes! By working with a home buyer like us. The number we give you is what you get. If we say $135,000, and you get $135,000.
We pick up all costs associated with the closing!
We do NOT charge you a commission.
But in the end, it’s your choice, and you have to do what’s best for your situation.
If you would like to learn more about the selling process or if you have any questions about selling your Oklahoma City home, send us an email using this form.