💰 What does it cost to sell my home?

1. COMMISSION

The largest fee when selling your home will be commission. Expect this to run around 6 percent to 7 percent of your sale price. So, if you sell your house for $250,000, you could end up paying $15,000 in commission.

According to the National Association of Realtors 77% of the time, the seller bears this cost. While this might sound like a steep price to pay to sell your home having a real estate agent will be worth it. .

As trained experts, real estate agents help you get top dollar for your house and solve problems and also alleviate some of the stress that comes with selling a home. Great agents earn their keep - this is another reason to be sure to interview several agents and understand what they’re offering you. Not all real estate agents are full service agents.

Another thing to keep in mind, is not all of the goes to your listing agent. The commission will be split between the seller’s agent and the buyer’s agent. A portion of what is left goes to their brokerage and the costs and fees to market your home. Another thing to note is listing agents don’t see a dime until your home closes - so they are taking a risk upfront when listing and marketing your home.

2. ADDITIONAL FEES

There are alot of additional fees people don’t think about before listing their home. Some of these fees can include;

• Updating your abstract

• pest inspection

• Document prep

• Legal fees

• Transfer taxes

• Title Insurance

• Escrow fee

• Brokerage fee

• Courier fee

Altogether, you should plan for these additional fees to costs about 2 to 4 percent of your home’s sales price.

3. TAX PRORATION

Taxes in Iowa are paid “in arrears”.

Why you ask? Because putting the tax rate and final tax bill together is based upon many factors, it takes a period of 18 months for the State to determine what your property tax should be.

So when it comes to selling your home this can create some confusion. At closing you will need to give the buyer a “tax proration” for that time you lived in the home. Depending on when you sell in the year this can be 9-15 months worth of taxes.

What about your tax escrow account? Even though you may have paid your most recent property tax payment, you still must catch up on property taxes by providing a credit to your buyer at closing.

Bottom line:

There are many fees involved in selling a home. When you interview agents be sure to ask for an estimate of proceeds. An estimate of proceeds will show you all the fees laid out.

📨 Questions about finding an agent? Contact us a message anytime.