How Much Does It Really Cost To Sell Your House?

Have you decided to sell your house but aren’t sure how much it’s going to cost you? In this video, I’m going to show you exactly how much it costs to sell your home in today’s market. I’ll break down the numbers so you can negotiate with the upper hand and know how much you’ll walk away with at the end of your transaction.

Title And Escrow Fees

Selling your house can be very stressful. You have to think about moving, packing, and adjusting to new surroundings. What's even more stressful, though, is not knowing what it's going to cost. When you know your selling costs upfront, however, you'll be able to negotiate with the upper hand.

Understanding what your bottom-line net walk-away figure will be is key. Remember, the most important number is not what your house sells for but what you walk away with in your pocket at the end. The very first costs you'll see on your closing statement are the title fees.

Title fees vary on the sales price and the title company. Most title companies, however, will charge in the $800 to $1,000 range for $100,000 sale price up to $1,800 to $2,200 at the $500,000 price point. The title company's job is to transfer the title to the new buyer and insure it. It’s simply a standard cost of doing business, and the title company's job is to get everything recorded for you.

Another line you'll see on your closing statement is for escrow fees. Escrow is a neutral third party that acts on behalf of the buyer and seller. They hold on to all the monies and transfers of money within the transaction. In our area, the title company and the escrow company are typically the same. You will close with the escrow company, but your title is insured by a title company.

Taxes And Commissions

Another cost you’re going to see is a fee for local transfer stamps or taxes. As with anything that's bought or sold, there's a tax to it. It's no different in real estate. When you sell a house in Northern Illinois, that cost is roughly $1.50 per $1,000. North of the border, it's about $3 per $1,000.

Here's how that's broken down. There's a state tax that runs roughly $1 per $1,000 and a county tax that costs roughly $0.50 per $1,000. When you close on your property, you will be responsible for your share of the unpaid real estate taxes from the time you occupied it to the time that you close on it. This is called a real estate tax proration. The amount of this tax will be determined by the closing date, but it's just for the taxes you already owe.

If you're using a realtor to sell your home, another cost to you is commissions. An agent’s commission will be around 6% to 7% of the sales price, depending on who you work with. Typically, a realtor’s commission is split evenly between a buyer and seller's agent. All the costs of marketing your home are typically included within the commission as well.

Total Closing Costs

When it's all added up, your closing costs typically reflect 7% to 9% of your sales price. However, this total price will vary. I highly advise that you get a seller's net sheet before you list your home so that you have a realistic expectation of what you will be putting into the bank from the sale of your house.

I hope this helped you understand how much it really costs to sell your home. Of course, there are many details we haven’t covered, but I can answer any further questions you have. I help people just like you sell their properties every day, and I would be honored and happy to assist you.

So feel free to reach out to me and I’ll be happy to connect with you. You can also subscribe to my channel for more information on the northern Illinois region in and around the Rockford area as well as South Central Wisconsin north of the border in and around the Janesville, Beloit, and Lake Geneva area. Stayed tuned to see what I feature next!