When selling your home, it’s crucial to understand the costs involved as the seller. Whether you're in Stoneham, Andover, or another town north of Boston, here’s a breakdown of the typical expenses you’ll encounter during the home-selling process.
1. How Much is The Real Estate Agent Commission When Selling Your Home?
This is often one of the largest expenses. There are no standard fees, but commissions typically range from 2% to 6% of the home’s sale price, depending on the services offered and whether you’re compensating a buyer’s agent.
2. What Are The Legal Fees When Selling Your Home in Massachusetts?
In Massachusetts, sellers generally hire an attorney to handle the legal aspects of the transaction. Your attorney will draft and review all necessary documents, including the purchase and sale agreement, and ensure compliance with local laws. Expect to pay between $1,000 and $2,000 in legal fees.
3. What are Massachusetts Deed Stamps (Transfer Tax)
The Commonwealth of Massachusetts imposes a real estate transfer tax, known as deed stamps. The rate is currently $4.56 per $1,000 of the sale price. For example, if you sell your home for $500,000, you’ll pay $2,280 in transfer taxes.
4. How Do I Pay Off My Mortgage When Selling My House
At closing, any remaining mortgage balance or other liens (like home equity loans) must be settled. The payoff amount will be deducted from your sale proceeds. Be sure to get an accurate payoff statement from your lender to avoid surprises.
5. Final Bills and Adjustments
As the seller, you’re responsible for all unpaid bills up to the day of closing. This includes property taxes, water bills, and any municipal services such as gas or electricity. These costs will be prorated and finalized at closing.
6. Smoke Certificate
In Massachusetts, you’ll need a Certificate of Compliance from the fire department, verifying that your smoke detectors meet safety standards. Most towns charge about $50 for the inspection, and if updates are required, you may need to replace smoke detectors, which can cost approximately $75 per unit, plus installation fees.
7. Title V Inspection (If Applicable)
If your home has a septic system, a Title V inspection is required to confirm it’s in good working order. The cost for a Title V inspection typically ranges from $500 to $1,000 or more, depending on your location and the condition of the system.
8. What Are Buyer Closing Cost Contributions When Selling Your Home?
In a buyer’s market, it’s common for buyers to request that sellers cover some or all of their closing costs. This is a negotiated amount and can vary based on the overall purchase price and the competitiveness of the market. If agreed upon, these costs are deducted from the seller’s proceeds at closing.
9. Inspection Repairs or Credits
After the buyer’s home inspection, you may be asked to make repairs or offer a credit for issues uncovered. In a seller’s market, these requests are less common, but they’re more typical in a buyer’s market. This expense can either be out-of-pocket before closing or negotiated as a credit toward the buyer’s closing costs.
10. Home Preparation and Staging
Many sellers invest in preparing their homes for sale through home staging, repainting, or landscaping updates. Staging costs can vary widely, but sellers typically spend between $1,000 and several thousand dollars, depending on the level of preparation.
Understanding When Costs Are Paid
Costs like the smoke certificate, Title V inspection, and home preparation are paid upfront. However, most other expenses—such as agent commissions, legal fees, and taxes—are settled at closing and deducted from the seller’s proceeds.
Plan Ahead for a Smooth Transaction
Selling a home is a significant financial transaction, and being prepared for these costs will help you avoid surprises. If you’re thinking about selling your home in Middlesex or Essex counties, reach out to The Ternullo Real Estate Teamfor expert guidance and a smooth transaction.