Question 1

What is the typical real estate commission for selling a home?

Accepted Answer

Traditional real estate commissions are typically 5-6% of the home's sale price, split between the buyer's agent and seller's agent (usually 2.5-3% each). This percentage is negotiable, and discount brokers may charge 1-3% but typically offer limited services. On a $400,000 home, a 6% commission would be $24,000.

Question 2

What are the total costs involved in selling a home?

Accepted Answer

Total selling costs typically include: real estate agent commission (5-6%), title insurance (0.5-1%), transfer taxes (0.01-2% depending on location), closing costs (1-3%), home staging ($2,000-5,000), pre-sale repairs (varies), inspection fees ($300-500), and property concessions to buyers (1-3%). Combined, expect 8-10% of sale price in total costs.

Question 3

How do I calculate my net proceeds from selling my home?

Accepted Answer

Net proceeds = Sale Price - Mortgage Balance - Agent Commission - Closing Costs - Repairs - Staging - Other Costs. For example, selling a $400,000 home with $250,000 mortgage balance and $35,000 in total selling costs would net $115,000. Use this calculator to get an accurate estimate based on your specific situation.

Question 4

Who pays for title insurance when selling a home?

Accepted Answer

Title insurance costs are negotiable and vary by location. In some states, sellers traditionally pay for the owner's title policy (0.5-1% of sale price), while in others, buyers pay. Lender's title insurance is typically paid by the buyer. Check local customs and negotiate as part of the purchase agreement.

Question 5

What are transfer taxes and how much do they cost?

Accepted Answer

Transfer taxes (also called deed or stamp taxes) are fees charged by state or local governments when property ownership changes. Rates vary widely: some states have no transfer tax, while others charge 0.01% to 2% or more of the sale price. Check with your local tax assessor or real estate attorney for exact rates in your area.

Question 6

Is home staging worth the cost when selling?

Accepted Answer

Professional home staging typically costs $2,000-5,000 but studies show staged homes sell 73% faster and for 1-5% more than unstaged homes. On a $400,000 home, a 3% price increase ($12,000) easily covers staging costs. At minimum, declutter, deep clean, make minor repairs, and use neutral colors to appeal to more buyers.

Question 7

What repairs should I make before selling my home?

Accepted Answer

Focus on high-ROI repairs that affect home's appeal and value: fix obvious defects (leaks, broken fixtures), paint with neutral colors, update outdated fixtures, improve curb appeal, clean/repair flooring, and address inspection issues. Avoid major renovations unless in poor condition. Consider pre-inspection to identify and fix issues proactively.

Question 8

Can I negotiate the real estate commission?

Accepted Answer

Yes, commission rates are always negotiable. While traditional full-service agents typically charge 5-6%, you can negotiate lower rates especially in competitive markets or for high-value homes. Discount brokers charge 1-3% but may offer limited services. Consider the trade-off between commission savings and services provided when negotiating.

Question 9

What are typical seller closing costs?

Accepted Answer

Seller closing costs typically include: prorated property taxes, HOA fees, utilities, attorney fees ($500-1,500), recording fees ($50-250), title search ($200-400), escrow fees (1-2% in some states), HOA transfer fees ($200-500), and home warranty for buyer ($300-600). Total seller closing costs typically run 1-3% of sale price.

Question 10

Do I have to pay capital gains tax when selling my home?

Accepted Answer

If the home was your primary residence for at least 2 of the last 5 years, you can exclude up to $250,000 ($500,000 for married couples) in capital gains from federal taxes. Gains beyond these limits are taxed at capital gains rates (0%, 15%, or 20% depending on income). Consult a tax professional for specific advice about your situation.

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