Selling your home can be expensive! Our goal is to help prevent you from being caught off guard by unwanted and unanticipated costs and expenses.
Whether you’re thinking about selling your home or are already in the throes of it and have suddenly had a pang of anxiety over what this whole process is going to cost you, stop worrying, and read on. We have put together a list of potential expenses that might help to clarify what lies ahead.
Here is what you should anticipate and budget for in Arizona:
Preparing your Home for Sale:
- Repairs – Your buyer is more likely than not to order a home inspection which will unearth any repair items that you have neglected or overlooked. We strongly recommend that you inspect, or that you hire an inspector, to find those things that need repair. Then plan for and budget an amount that will ensure that your home is in good repair when you list it.
- Staging – As you know, we are big on staging your home to make it more attractive to potential buyers and shortening the time it sits on the market. This is an area where you do not have to spend a lot, but you should work with your REALTOR® to determine what you should budget for staging.
- Cleaning – Your home needs to sparkle and shine which means that you should have it deep cleaned before you list it. Depending on what flooring you have in your home, you will need professional cleaners to clean carpets, tile (including grout), wood, etc. Budget for a top to bottom, all surfaces, cleaning and do not forget your window coverings.
- Financing – Your largest expense is most likely repayment of your mortgage, together with lender fees and possibly early pay-out penalties.
- Taxes – The seller is responsible for property taxes up to the closing date of the sale. If your property taxes are pre-paid, you will receive a credit from the buyer for any amounts that you have paid beyond the closing date, if the taxes are not pre-paid, you will be debited for the pro-rated amount due up to your closing date.
- Title Insurance – Sellers should expect to pay for what is called the ALTA Homeowner’s Policy of Title Insurance which insures the buyer against defects in the title to your home.
- Escrow/Settlement Fee/Attorney Fees – The escrow or settlement fee is paid to the escrow company and is ordinarily split equally between the buyer and the seller. Although uncommon in Arizona, some people choose to use an attorney rather than an escrow company, in which case there will be attorney fees to be paid.
- Real Estate Commission – Unless otherwise agreed, the real estate commissions are entirely the responsibility of the seller.
- HOA Fees, Dues and Assessments – HOA fees are pro-rated to the date of closing, if they are paid in advance, the seller may receive a credit, if not the seller will be debited fees up to the closing date. Watch for other HOA charges and assessments, such as disclosure fees, community enhancement fees and club usage charges. Disclosure fees, if any, are paid by the seller in AZ. Transfer fees are ordinarily paid by the buyer.
In some cases, the costs are determined by how much you are willing to spend and are entirely in the control of the seller, these include repairs, cleaning and staging. In other cases, the cost will depend on the sale price of your home, such as title insurance, the escrow fee and real estate commissions. Property taxes and the amount due on your mortgage (including interest and penalties) are fixed.
In Arizona, the average cost of selling a home in 2017 was just under $15,000. You should prepare, or ask your REALTOR®, lender or title company to prepare a closing cost estimate for you so that you are aware, in advance of what it will cost you to sell your home. If you missed our blog post on the Seller’s Net Sheet, click here, we will walk you through the steps you need to prepare your own.
That’s it for today’s post, if you want more information on seller closing costs, or if you want to stay up to date on all things Anthem, make sure you like our Facebook Page at ‘Wise Move AZ’ or subscribe to our Wise Move AZ channel on YouTube.
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Remember, if you or anyone you know is looking to buy or sell their home, please give us a call! It’s always the right time to make a wise move with the Wise Move AZ Team.