In this part of the blog series, How to sell my house? We will look into the Pricing strategy and costs involved in selling a home.
1. How to fix the price of my house?
The longer your house takes before being sold, the more you’ll lose. The reality is, you’ll have to pay mortgage, taxes and utilities until the closing date is set.
It is possible to search the neighbourhood to determine the cost of a house like yours.
You could also decide on a reasonable price by enlisting the assistance of an Engineer or Valuator for an Appraisal. These experts are knowledgeable about various neighbourhoods, and they’ll be able to set the price of your house to sell without sacrificing the hard-earned equity.
2. What is the percentage of the sale value I get?
The amount you will receive when you sell your house is contingent on various aspects, but generally expect between 86 and 90 percent of the selling cost. It usually comprises 5-6 percent commissions from realtors and 7.5% in transfer taxes and other fees.
If you’re still owing money to your mortgage, you’ll get less. Additionally, you’ll receive less if you have agreed to pay any closing expenses that are ordinarily the responsibility of the Buyer.
3. Should I pay my buyer’s closing costs?
You might want to cover your closing costs for your buyer if it helps them present a better deal or makes the sale go through more quickly.
Buyers could be able to submit a more attractive price if they have less upfront costs to be paid in advance.
In addition, paying their closing costs could help reduce the amount they’ll need to borrow in the form of a mortgage, which makes it more likely that they’ll be eligible for the loan and the sale will go ahead without any issues.
In the end, if an inspection uncovers small problems that the buyer may want to address and fix, offering to pay for the closing costs of the buyer can help them feel more comfortable making the purchase.
4. How much do I want to pay in the closing cost while selling my home?
Sellers typically pay 14 percent of the sales cost in closing expenses. Five percent is the commission paid to the realtor.
The remainder is a compilation of different costs, comprising:
- Title searches $60
- Filing Fees $60 if filed within 3 months
- Legal fee: 1.5 percent of the final purchase price
- Transfer tax Variable tax on the transfer
- Prorated property taxes
5. Why is there a difference between my house’s assessed value and Market Value?
The assessed value of your home and its market value are determined by a variety of elements.
Sellers and buyers affect the value of homes and appraisers from professional firms estimate the value.
In a buyer’s market, the value of your home market value could exceed the appraised value. That’s due to buyers being more likely to pay more than what the property is technically worth due to the lack of availability.
In a buyer’s market, you’ll be faced with many competitions from other sellers, which means buyers might make an offer that is less than the assessed value of the property.
