How Much Are Closing Costs In Va – Selling a home takes a lot of time and costs a lot of money, often much more than the sellers expect. If you’re thinking about selling, it’s easy to get excited when you look at your Z-rate and see how much your home’s value has increased over the years, but it’s important to be prepared for the hidden cost, and some sometimes overlooked, of selling a house.
On average, homeowners spend seven months planning and preparing to sell their home, and another three months listing, processing and closing on their home. Here are the costs you can expect during that time.
How Much Are Closing Costs In Va
The total transaction costs of selling a home include standard closing costs, as well as potential costs associated with selling the home, moving your belongings (and sometimes yourself), and offer of concessions to the buyer.
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To clarify, closing costs include up to 6% in commissions (to your broker and the buyer’s broker) and an additional 2% to 4% in transfer and property taxes, attorneys’ fees , and property expenses such as property insurance, HOA transfers, and security deposit fees.
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Cleaning: For your first open house or showing, consider hiring a cleaning lady for a deep clean. You also want the carpets professionally cleaned and the windows washed.
Stages: In recent research, 48% of recent buyers rated owning a home as somewhat, very, or extremely important. Home staging can take many forms, but you should at least tidy up, arrange the furniture to make the most of the space, and get rid of personal belongings. Small touches like new bath towels, a fresh rug, flowers and cookies can also go a long way.
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Landscaping: Your appearance is the first impression of your home, so you want your exterior to look its best. Add flowering plants, make a path if you don’t already have one, rake leaves, mow the lawn, light the path and – in winter – shovel snow.
Home Improvements: There are two main types of home improvements you can make before listing: improvements to repair or replace old systems (roof, furnace, windows, etc.), and improvements that add features that buyers want. they like, with the aim of a higher selling price. Ask your real estate agent for advice on what buyers are looking for in your specific area: 79% of sellers make home improvements before selling.
Professional photos: 68% of home buyers say that seeing professional photos of a home is somewhat very important. The investment is small, but the return can be huge. Standard professional photos cost $150-$200 depending on the market. If you use a full-service listing agent, they can cover the costs for you.
Marketing Fees: There are costs associated with listing your home on the local MLS, but they are usually covered by your realtor if you use one. If you are selling yourself – listed for sale by owner (FSBO) – you can list your home for free on . If you are selling on your own, you will also need to set aside some money to print flyers, signs and opening materials.
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Pre-inspection: A pre-inspection is optional, but if you choose to do one before it’s on the list, you’ll know in advance what important issues need to be addressed, which can save you a lot of negotiations with potential buyers in the future. . away According to research, 15% of home deals that go through fail because the buyer returned after the inspection report. Paying $250-$700 for an inspection (depending on the size of your home) will give you the information you need to choose the right list price and negotiate strategically.
Another type of expenses for the budget is to move – the costs associated with actually moving from your home.
Temporary accommodation: If you are selling one property and buying another, it is almost impossible to calculate the transactions perfectly so that there are no additional housing costs. Regardless of where you are moving from, most sellers typically have an overlap of about a month and a half when they are still paying off their existing mortgage, plus alternative housing costs.
Utilities: Most sellers leave their tools while their home is for sale, for showings and open houses. But make sure you cut the utilities from the date you leave so you can avoid unnecessary charges. Your last utilities must be prorated from the date of sale.
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Moving costs: Moving costs can vary greatly depending on the size of your home, how many belongings you have and how often you’re moving. But whether you’re doing a DIY move, hiring professionals from start to finish, or anything in between, there are always costs associated with moving, and they often have to be paid before closing, so you’ll need cash.
Homeowners Insurance for Vacant Properties: Did you know that your existing homeowners insurance policy may not cover your property when it is vacant? If your home is vacant for a period of time, it is important to talk to your real estate agent about adding a boarder for that period.
It is rare that you get the perfect offer and can close without compromising the buyer. In fact, according to the Consumer Housing Trends Report, 83% of sellers make some kind of compromise with the buyer to facilitate the sale of their home.
Post-inspection repairs: An inspection report rarely comes back perfect, so it’s common for buyers to request repairs from sellers. As a result of an inspection report, sellers often lower the sale price so that buyers can make the repairs themselves, or have the repairs made as a condition of the deal.
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Buyer’s home warranty: As a way to make the deal more attractive to potential buyers, sellers sometimes cover the cost of a home warranty. Not only can it differentiate your home from others on the market, but it can also increase the buyer’s confidence in your property. A one-year home warranty can cost $300-$500, depending on the coverage.
Closing Cost Credits: Another concession that buyers often request is for the seller to cover all or part of the buyer’s closing costs, effectively minimizing the amount of cash that buyer needs to close. For the seller, these costs come from the profit you make on the home at closing.
Average closing costs for sellers range from 8% to 10% of the home’s sale price, including the broker’s commission (about 6% of the sale price) and the seller’s fees. -seller (about 2% to 4%). With the median home price in the United States at $217,000, closing costs come in at $17,000-$22,000. Of course, these costs vary depending on the tax rate, where you live, and the value of your home.
Broker Commission: Most of your closing costs come from paying commission to real estate agents. It is typical for the seller to pay both 3% to their own broker and 3% to the buyer’s broker. Sometimes you can negotiate your own agent’s commission, or consider using a discount agent who offers limited services for a lower discount.
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Transfer tax: Also known as a transfer tax or title fee, this amount varies widely due to different tax rates by state and the sale price of the home.
Title Insurance: Sellers are generally also required to pay the buyer title insurance, which protects their interest in the home if there are issues with a disputed title or outstanding lien. The cost can be in the range of $1,000-$4,000 and will come out of your net profit on the deal at closing.
Escrow Fees: Buyers and sellers typically share the cost of escrow services (the third-party company that handles the disbursement of funds at the sale), which can ‘be $500-$2,000, and may also include additional line items for office fees, transfer fees. . , and notary services.
Property Taxes: You are responsible for property taxes on your home until the day of closing, so you will see a prorated amount on your statement.
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Always an HOA: Similar to property taxes, if you live in a community with a home owners association, you must also pay your dues, prorated by the closing date. You may also be charged for the transfer of ownership.
Attorney’s Fees: If you use the services of an attorney in your transaction, you will also be required to pay them at closing. Attorneys should check exclusions in these locations: Alabama, Connecticut, Delaware, Florida, Georgia, Kansas, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Dakota, Pennsylvania , Rhode Island, South Carolina, Vermont, Virginia, West Virginia and Washington
After closing costs are paid, it’s not all profit. There are a few costs when selling a home that you need to consider:
Outstanding Mortgage Balance: If you are still paying a mortgage on the home, part of the closing process includes paying off your mortgage balance, broken down by date of sale. You must check with your mortgage company
