I have noticed a bit of confusion recently when it comes to what a Bryan College Station Seller expects to pay when selling their home. On the last listing appointment I went to, I was surprised to here the Sellers say: “We’ve decided to list with you, but we’d like you to explain why your closing costs are higher than what the other Realtor quoted us.”
The reason I found this to be so surprising is because, for the most part, closing costs are fixed costs. I always estimate closing costs to be a bit high, because I would rather the seller be happy that the number is just under what I predicted, than have them be upset that their costs are more than what they expected them to be. I believe the more information you are able to provide your client, the better able they will be to make the decision that is right for them.
So, as a Seller, what are your closing costs? I’ll give you 2 ways to estimate what your total costs will be. The easiest way to get a good ball park estimate is to take your sales price (remember sales price, and not list price) multiply it by 7% round up if you are close, down if your not, and add between 1,500 & 2,000 dollars. Why 7%? Because the Seller’s title policy amount, which is regulated by the State of Texas, is roughly 1% of the sales price. The extra $1,500 – $2,000 covers small misc. repairs the Buyer might ask for, plus a home warranty and title company fees.
The second way to estimate your closing costs is to itemize everything out. Below are still approximates but more detailed.
When you get your total amount of closing costs, including your loan payoff, subtract the total amount of cost from the sales price to determine what amount you will walk away with. This should give you a good estimate of what it will cost to sell your home.