It cannot be over-emphasized that closing costs are an integral part of real estate transactions. Thus, it is logical for homeowners who want to sell their homes to consider closing costs before selling.

Every real estate transaction is different; however, the bulk of these transactions entail payment of closing costs. This can be bothersome because closing costs are an inevitable aspect of selling properties. This is why it is important to have a deep knowledge of these closing costs.

Let’s take a deep dive at closing costs that homeowners are expected to pay when they are selling their properties, and more importantly, the principal course of action to circumvent them, so as to have more money in your pockets when you sell your houses as homeowners.

Standard Closing Costs

It is worthy to note that when homeowners (sellers) are selling their properties in a traditional way, that is, engaging real estate agents to list their properties on the multiple listing service (MLS), sellers have to inevitably pay closing costs despite their negotiations, for the closings to occur.

In standard real estate transactions, homeowners who are selling their homes can anticipate to pay between 6% and 10% of the sales price in closing costs. These costs usually cut into a seller’s bottom line, and in some cases, turn a potential profit into an expense.  For example, if a homeowner has their property listed by realtor for a sales price of $400,000, the homeowner is expected to pay between $24,000 to $40,000 in closing costs!

The lion’s share of these closing costs are real estate commissions fees (paid by the buyer and seller), which is between 5% – 6% of the total sales price, split between the buyer agent and seller agent. The other portion of the closing costs, which is about 4% to 5% accounts for mortgage and transfer taxes as well as recording fees. These are typically non-negotiable and avoidable. This 4% to 5% of the closing costs may include the following:

• Title Insurance
• Prorated Property Taxes
• Attorney Fees

It is obvious to see how these closing costs can actually add up and discourage homeowners who are considering selling their properties. This practically prevents homeowners from achieving their goals of moving to the next point quickly because closing costs eat deep into sales profits that homeowners are banking on to attain their goals. Ultimately, the question is how can homeowners overcome this challenge of closing costs? Let’s look at how.

How Can You Put Money in Your Pocket?

Typically, the majority of homeowners who want to sell their homes think they cannot do much about these closing costs. This is a common misconception.  Guess what? You can do a lot to put more money in your pockets!

Homeowners in Central Maryland and its surrounding area, who sell their houses to us, will not have to transact with real estate agents, thereby circumventing payment of real estate commissions, which can be up to 6% of the sale price of your houses. Not only that, homeowners who sell their houses to us usually get almost as much as when they list their houses with real estate agents. However, selling to us will be without the hassle of the long wait that homeowners have to endure for the right buyer to come along!

In addition, we take care of everything to ensure that the transaction is quick, convenient, and hassle-free for you. This way, we let homeowners have time to take care of other things that are important to them, while they get the most for their houses, without having to worry about every detail.

This blog is only the purpose of enlightening the readers and is not meant to be used for tax, real estate, financial, insurance, legal, or investment advice. Kevalla Investments, LLC encourages you to contact a professional regarding your own circumstance. Please confer with your advisor when making financial or legal decisions.