The Cost to Sell
So you have realized its time to put your Portland area home up for sale, but you aren’t sure what all the costs associated with selling your home are. What sort of commission rate do I pay the real estate agents? Do I need to pay taxes when I sell my home? What other expenses are involved with selling my home?
We’ll try to answer all these questions or at least get you pointed in the right direction!
- Real Estate Agent Compensation
A real estate agent’s sales compensation will vary depending on which real estate company you use and the type of service that you are needing. The compensation rate that is paid is generally a percentage of the final sales price of the home. A good agent can more than make up for the compensation with a good sale price and less hassle. As the seller, you are responsible for the buyer’s agent’s compensation as well as the selling agent (listing agent) compensation. Urban Pacific’s compensation rates are very competitive – call us for details.
- Title & Escrow Expenses
When you sell your home you will also have a title & escrow company handling your transaction as a 3rd party. There fees to cover the cost of title insurance, the fee for the title and escrow services and sometime fees to the government (city, state, county) for recording fees.
- Home Repairs
Before you put your home on the market or after the buyer’s inspection you may be required to make some repairs to your home. Its always a good idea to prepare yourself for potential repairs. A professional inspection is always recommended, but not required.
- Prepayment Penalty
You’ll need to pay off the mortgage on the home you’re selling, which may involve a prepayment penalty. Review your mortgage or ask your current lender for details
Generally speaking you do not get taxed when you sell your home. If the home is your primary residence you will not be taxed unless your net gain is greater than $250,000 for a single person or $500,000 for a married couple. I always recommend you speak to a CPA or tax professional about this topic. For hours of entertainment you can read the tax law specifics on the IRS website.
- Moving Costs
Don’t forget that when you move you are going to have some costs associated with the physical move itself. Costs can include packing supplies, van rental or movers, and more.