Each step in the process of selling your home on the traditional market comes with a cost. Then, after all of the anticipation, you have finally sold your home, and the new focus becomes the complex closing process wherein the title on the home transfers to the new owners. So often, sellers’ purchase of their next home depends on the proceeds from the sale, and unforeseen hurdles at the closing soon create a nightmarish flurry of problems and more cumbersome paperwork.
For first-time home sellers, the process can be overwhelming; being caught off guard at closing is more than unpleasant. Deductions made from the proceeds of a traditional real estate transaction can quickly dwindle the amount of cash you’ll have in hand when you walk away from the closing table. For sellers, closing costs can add up to eight to ten percent of the proceeds or more. Therefore, sellers must be aware of the expenses associated with this process to walk into the closing with realistic expectations. We will explore what Reno home sellers need to know about the closing costs.
Reno area home sellers need to know about prepayment penalties on the mortgage or equity loan payoffs in the closing costs. It’s possible to lose money on the sale after paying exorbitant penalty fees. However, in the best-case scenario, your final sales price pays off the balances on any loans and leaves you with a profit.
Commissions and Fees
Real estate agents charge Reno area home sellers a commission for their services, which is paid at the closing. Sellers also pay the agents commissions for the buyers from the proceeds of the sale. The typical amount is six percent of the home’s final sales price, divided between your real estate agent and the agent for the buyers. Often, the buyers and sellers split the escrow fees depending upon the terms of the contract.
Taxes and Document Fees
Naturally, sellers must pay any taxes still due on the property in full before the title transfers and the document recorded, for which sellers will pay a fee at closing. Thus, transfer taxes are another closing cost Reno home sellers will pay when the title transfers to the buyer.
Reno home sellers need to know about the title insurance, protecting the buyers from possible title defects, typically paid from the sellers closing costs for the buyers. Though it is not mandatory that you get title insurance, it is highly recommended that you do get title insurance.
Sometimes to help get the transaction closed, the title company will use an attorney for documents or other matters. And for Reno home sellers this is just another cost associated with closing, though this is not all the time, it is worth knowing about so you are not blind-sided at closing.
These costs, while not taken from the proceeds directly, should still be considered. In addition, you may need to consider any effect the sale may have on your income taxes and any capital gains. These include the title company, which may charge fees, depending upon the services they provide. Additional expenses that Reno home sellers should be aware of are the remaining balance of any existing liens or judgments against the property, any homeowner association fees that may be due as well as prorated property taxes. In addition, sellers must complete any agreements for repairs or any other improvements in the sales contract as out-of-pocket expenses before closing. If you sweetened the deal by offering to pay the buyers closing costs, these would also come out of the final proceeds. Finally, sellers must have also paid any other service providers involved in the transaction at this time.
Envy Property Solutions, LLC
When working with a direct buyer from Envy Property Solutions, LLC, you won’t have to worry about all those closing costs, because we cover them all. And at Envy Property Solutions, LLC we are an alternative to the traditional real estate agent and we make it easy for Reno home sellers to save the closing costs for themselves and avoid the hassles of traditional closings. At Envy Property Solutions, LLC, we will take the time to outline your profits on the sale through a traditional real estate listing so you can compare realistic numbers against our fair offer for your home as-is. Decide for yourself if a direct sale for cash to Envy Property Solutions, LLC is best for your situation. We don’t charge any commissions, and absolutely no hidden fees are coming off the top of your profits. With simple contracts and no wire transfers to worry about with Envy Property Solutions, LLC, your guaranteed closing can be in a matter of a few days. Relax, if your new home isn’t ready, Envy Property Solutions, LLC has the flexibility to set the closing for a convenient date. Without all of the complications, making a direct sale to Envy Property Solutions, LLC means you don’t need to worry about prepping, repairing, staging, marketing expenses, or even a final cleaning; just take what you want with your to your new home and leave the rest to us. At Envy Property Solutions, LLC, we have years of experience with many unique circumstances at play; and are happy to answer any questions or concerns you have about the process, with absolutely no obligation. Call Envy Property Solutions, LLC at (775) 391-5236 or send us a message to learn more.