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Buying A House
Real estate

How Are You Paid When You Sell A House?

Selling a home is an exciting time for most of us. It means leaving our old home to start a new chapter in life -a more spacious, beautiful, and tranquil place to reside. But as we move forward into the next stage of our lives, we cannot forget that selling a home also involves moving back into our old world to close out accounts, pay bills left behind by the former owners, and collect any final wages owed to you. You can click here to read more.

Here is how you are paid when you sell a house.

Closing Costs

When you sell a home, you are required to pay closing costs, which is a sum of money set aside to pay for various expenses related to the sale transaction. Closing costs can include the real estate agent’s fee, recording fees, notary service fees and any other expenses directly associated with the real estate transaction such as advertising or appraisals. The amount of closing costs you are required to pay depends on the state where your home is located, but typically, it ranges from 2 to 5 percent of the selling price.

Buying A House

Earnest Money Deposit

An earnest money deposit is a non-refundable down payment that must be paid by the buyer upon signing a contract to buy a house. Or, more simply, it is the amount of money you are required to pay to the seller at closing in order for him or her to transfer the title of your home to you. Depending on the real estate contract you sign, this sum could be anywhere between 1 and 3 percent of the total selling price.

Real Estate Commission

Real estate commissions are paid by both buyer and seller. Unlike closing costs which are paid by both parties involved in a real estate transaction, real estate commissions are usually charged by sellers only. According to some real estate brokers and agents, the commission charged by buyers may be as much as 15 percent of the selling price, but this is just an estimate, so you have to check with your agent.

Recording Fees

You may need a notary to witness your real estate transaction also known as a deed of conveyance or a mortgage note recordation document. The local county recorder’s office will charge you for their services. Likewise, you may have to pay a recording fee to the public registry where your real estate contract is recorded. This fee generally ranges from $5 to $30.

Furniture Moving Fee

You are also charged fees when you sell a house is because furniture moving companies will claim payment from you while they transfer your belongings from your old house to your new home. The amount of money you will pay them depends on how far you live from the place where you are moving and how many pieces of furniture and items they need to carry.