What costs are involved when selling a home?
Closing costs : These usually average 2 to 4 percent of your sales price. The difference between your outstanding principal balance and any payments you will make before the sale date will be your payoff. Commission : On average, the sales commission is between 6 and 7% of the sales price of the house. This is then split between the buyer and seller agents. Taxes : In some states you prepay property taxes, which means you may get a credit at closing instead of a bill. Though capital gains tax laws have relaxed to the point where most Americans don’t have to pay tax on real estate profits, you will likely have to pay if you’ve lived in your home only a short time. Make sure you know where you stand. Penalties : If your loan has a prepayment penalty, add that to your principal balance. On the other hand, you may get a refund of advance escrow payments you’ve made on your homeowner’s insurance. Ask your lender to confirm your calculations. Some lenders charge a nominal fee for preparing a
