If we sell our house for 245K, and we owe 232K, the Realtor's commission is 5%, and then there are closing costs. How do we do this? Do we just show up with our check book to pay any money owed? Will there be money left over for us to have any small profit? What do we expect? Do we need to be prepared to have several thousand dollars in cash?
Answer:
Here are your typical seller costs:
- Marketing Fee/Broker Commission (using 5% as an example*)
- $12,250
- State Transfer/Stamp Taxes ($4.56 per $1000)
- $1117
- Deed Preparation
- $150
- Recording Fees (mortgage discharge)
- $75
- Misc Charges (tracking, Fedex & payoff fee, etc.)
- $200
These fees would total $13,792. Subtract this from the selling price and you end up with $231,208 towards paying off your mortgage, so you would have to bring $792 to the closing table to pay off the balance of your mortgage. Typically, you would have to bring a bank or certified check for that amount to the closing.
These numbers are only examples. Your mortgage balance changes daily. This example also does take into consideration any real estate taxes that are due or paid in advance on the date that the property closes, so the amount could be more... or less. The attorney or title company handling the closing will be computing the final numbers, so that it the best person to talk to.
*The 5% commission rate is used as an example only. Each company or office sets its own fee structure. By law, all real estate commissions are negotiable.
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