Common Fees Involved with Selling a Home

Many sellers are unfamiliar with the costs and common fees that are involved with the selling of a home. Here’s a rundown of the most common fees that you will have to account for if you are planning on selling a New Jersey home.

Paying off the rest of the mortgage
Many people who sell their homes use the money that they make from the sale to pay off the rest of the mortgage. Then they can use whatever is left over to purchase a new home, or put the extra money into savings. Don’t forget that you will have to pay off the interest on the mortgage as well, so the overall balance will most likely be more than you expected. You might also want to find out if your lender has the authority to charge you a penalty for paying off your loan earlier than expected. Go over your mortgage contract with a lawyer to see if you will have to pay any extra mortgage fees.

Paying closing costs
Some people forget about all of the closing costs that are involved with buying and selling a home. Keep in mind that you will have to pay your lawyer for helping facilitate the close of the house. This could cost anywhere between $500 to $1,000 dollars. Then there is the title insurance, which can cost an additional $1,000 dollars depending on where you live. Other closing costs include property taxes and document preparation fees. Total closing costs vary, but often average between $2,000 and $5,000 dollars.

Moving costs
Don’t forget that you will have to pay the movers! How else are you going to be able to move out of your home after you sell it? The cost of movers depends on how much stuff you need to move, and where you are moving. The further away you have to move, the more you will have pay. It’s best to get a few different quotes from two or three movers so that you can be sure you are getting the best deal possible.

Any buyer negotiated fees
Buyers are more aggressive today than they have been in the past. They tend to negotiate the terms of the real estate transaction, especially if they are paying more for the home than they expected to pay. The buyer may ask you to cover their closing costs, which can cost you an additional $2,000 to $5,000. This can be averaged into the sale of the home, but still needs to be accounted for. Other negotiated terms could be the cost of the home inspection, the cost of any repairs that need to be taken care of before the sale is final, or the cost of a home warranty.

Realtor’s commission
Some sellers choose to try and sell a home without a realtor so that they won’t have to pay any additional commission to the realtor. This means that they will get to keep more money from the sale of the home. However, if you do have a realtor then he or she will make a certain percentage off sales in the Hills, Bedminster, NJ.