If you are looking to sell your home, you are probably thinking about how much money you can make from the sale. But before you get too excited about the profits, it is important to look into what kinds of costs you will have to pay when you close the sale.
Keep reading to learn about the average closing cost for a seller and how much a home seller in Arizona might have to pay.
Types of Closing Costs
The average closing cost for a seller comes from a variety of sources. Here are three of the most common types of closing costs you will need to pay.
Title Insurance
Before you sell your house, a title search will verify that you are the owner. Paying title insurance protects you, the lender, and the future owner of the property in case any ownership claims unexpectedly surface.
If an ownership claim did arise, your title insurance would help save you from paying for an incredibly costly legal dispute.
Taxes and Fees
Property taxes and HOA fees are two common closing costs for sellers; however, these costs are normally split with the home buyer. HOA fees will depend on when in the month you are closing on the house. If it is in the latter half of the month, you may have to pay the first half of the month’s fees.
Unlike the real estate agent’s commission, there is no room for negotiation with taxes and fees.
Commission for Your Real Estate Agent
Paying your real estate agent’s commission is one of the largest closing costs you will face when you sell your house. In Arizona, this normally equates to 4.5% to 6% of your home’s final selling price.
If you wanted to lower this cost, you could conduct a “for sale by owner” transaction, and you would only be paying the buyer’s agent’s cost instead of adding your own to the mix.
Depending market, and if your agent is helping you buy your next house, you may be able to pay a lower commission cost by negotiating with your agent.
How Much is the Average Closing Cost for a Seller?
All in all, your closing costs will most likely come out to 6% to 10% of the final sale price of your home.
Most likely, your closing costs will be taken from the profits from the sale of the house (unless you have little home equity). You will never see the money that pays your closing costs--so you don’t have to really lose it.
Are You Planning to Sell Your Home?
Whether you are moving into foreclosure or simply relocating out of state for a new job, selling your home can come with many challenges. The average closing cost for a seller is just one factor in selling your home. If you are planning to sell your home, you shouldn’t have to navigate that process alone.
Interested in selling your home in Arizona? Head over to our Contact page to get started on your selling journey!
