Expenses You May Have When Selling Your House

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Selling a house is not something that is free. In fact, as the seller of the house, you will be responsible to pay a commission to the agency you list your home with. This is the main fee you will have; however, there are other expenses you may encounter during this process. It's important to understand this, because these fees can affect the amount of proceeds you receive when you close on the house. Here are some of the fees you may have that you may not have thought of.

Liens on your house

A lien is something that can be placed on your house if you owe someone money. If you have any liens on your home, you cannot close on the deal unless you pay them off. You can find out if you have liens by contacting your local courthouse. If you feel the liens should not be there, you will have to either try fighting the person that put them there, or you will have to pay them. They must be taken care of fully before you can close on the house. If they are not, part of your house sale proceeds will be used to pay them.

Prorated taxes

In addition, you may have to pay some prorated property taxes on your house at closing. Property taxes are usually calculated for the previous year and are due the next year. You will have to pay all the taxes owed from the previous year when you close on the house, plus they will also prorate the taxes from January 1st to your closing date, and you must pay those, too.

Fees for inspections or closing costs

When the buyer writes up the purchase offer to buy real estate, it may state that you (the seller) are responsible for certain fees and expenses. This may include fees for a termite or sewer inspection, and it could also include fees for the buyer's closing costs. If you are not sure what fees you are responsible for, look at the purchase offer the buyer gave you. You will have to pay whatever you agreed to pay on the contract.

Interest on your home loan

Finally, you will have to pay off your home loan with the proceeds, and this will include accrued interest. Interest on home loans accrues daily, which means you may owe more on your house today than you did two weeks ago.

If you are ready to sell your house, it's always a good idea to fully understand what expenses you will have. If you have questions about this process, talk to an agent today.

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