How much does it cost to sell my house? is one of the most common real estate questions we get asked here in Northeast Wisconsin. Like any other transaction in our lives there are fees associated with getting a home sold.
For a detailed breakdown I went to our team’s listing expert–team leader Carolyn Stark. Here is a breakdown of the fees that home seller’s can expect.
Real estate commission. Our team charges a commission of 6% of the sales price when we list homes for sale. From that fee we provide marketing services including but not limited to staging, professional photography, and ads on social media. We also pay the commission to the agent working with the home buyer that purchases the house.
Title insurance. The home seller pays for a title insurance policy to convey the title free of liens and incumbrances to the home buyer. The cost is determined by the sale price of the home. For a $200,000 home the cost is $744 to update an existing title insurance policy.
Gap insurance. This is an insurance policy from the home seller to the home buyer that there are no new liens placed on the title from the time the title search is done until the deed is recorded. Expect this to cost $125.
Document preparation. This is a fee paid to the title company to prepare the closing documents. It is typically $95.
Administrative fee. This is a fee paid to the brokerage to process the transaction documents. The cost is $225.
Municipal letter. This is a fee paid to the city/town/village to confirm the property taxes have been paid, confirm there are no outstanding special assessments, and confirm the water bill is paid. The fee is typically $50.
Recording of mortgage satisfaction. This fee ensures the home mortgage payoff is recorded with the county clerk. The cost is $30.
Real estate transfer fee. Much like a sales tax, this is paid to the State of Wisconsin and it is $.30 per $100 of the sales price.
Deed preparation. This fee is paid to an attorney to prepare the documents to transfer the deed to the home from the seller to the buyer. The cost is typically $75.
Tax proration. The home seller is responsible for paying property taxes on the home from January 1 until the day of closing. The number used is spelled out in the Offer to Purchase but it’s typically based on the prior year’s property taxes and calculated at a daily rate.
Mortgage payoff. Any outstanding mortgages need to be satisfied at the time of closing.
Special assessments. Any outstanding special assessments need to be satisfied at the time of closing.
Home warranty. You may choose to offer a home warranty to the home buyer when you list the home for sale. The cost is $425-$600.
Buyer concessions. In the Offer to Purchase the buyer may ask you to give them a credit at closing to assist them in purchasing the property. These fees are negotiable and are not required.
If you have a rural property you may be asked by the buyer to provide a well water test and a well inspection. Cost is $195-$235.
You may be asked by the buyer to have the septic system inspected. The cost is $370-$450.
Seller’s net proceeds
An estimated cost document is created for every home we list for sale so you know in advance what the estimated net proceeds will be.
If you would like to know what your home is worth visit our home valuation page or give us a call to get a FREE market analysis of your home.
If you would like to know more, give us a call today!