Sellers in Milwaukee who list their properties on MLS have numerous expenses they need to think about. Even after the sale is done, they still have to count on some closing costs.
If you plan to sell your house the traditional way, you’ll have to count on some expenses associated with house selling. One of the things sellers typically pay is the closing of the sale. This is a shock to many homesellers, who have hoped they have finished with the expenses once the house is sold. True, some of these costs are covered by buyers, but a big portion of them still lies on the seller. How big are closing costs for sellers in Milwaukee?
In most cases, the exact amount depends on the price of your home and the area you live in. Still, typical closing costs vary from 6% to 10% of the sale. You won’t have to pay this in cash. The amount will be deducted from your profit – unless the equity on your mortgage is very low. If this is the case, you may be required to pay some in cash.
Below are some of the closing costs sellers can expect in Milwaukee.
One of the biggest costs that you’ll pay during the closing is the commission for your real estate agent. This price is negotiable, but it usually costs 6% of the sales price. This can end up in tens of thousands in expenses! Not to mention, that 6% includes the cost of the buyer’s real estate agent, as buyers aren’t required to pay them independently.
If you didn’t already payoff your mortgage, you will need to pay to your lender so you’re no longer in debt towards them. Often times, your payoff balance will be higher than the amount of what you owe on your mortgage. It isn’t rare that it even gets higher than the purchase price! This is because lenders have a prorated interest on the mortgage. Your lender might even demand you to pay a prepayment penalty. This is done when you’ve paid off your mortgage loan before the agreed time. For example, if you have a line of credit or a home equity loan, you might have to pay them completely at the time of closing the sale. Make sure you’ve talked to your lender before the sale is over, so you know just how much you’ll be required to pay to the bank.
Title Insurance Costs
Title insurance fees are another expense you have to count in your closing costs. Title insurance is necessary as it protects both the buyer and lenders in case there is something wrong with the title of your property. The seller has to pay for it from their own pockets. Usually, you’ll be required to pay the buyer’s title insurance premium.
Transfer, Recording, and Property Tax Fees
Other that title insurance, you’ll also be requested to pay for transfer fees, recording fees, as well as property taxes. All of these are mandatory closing costs for homesellers. What are these taxes? Transfer taxes are imposed by the government (either state or local) that cover the costs of transferring the title from the homeseller to the home buyer. You can’t transfer the property ownership without this tax. The same goes for recording fees, which are charged by a government agency. They serve as a fee for registering a property purchase and making it a public record.
Together with these two taxes, you have to pay any property taxes you may owe. Otherwise, a sale of the house cannot be closed.
If your attorney represented you at the settlement, you’ll have to pay attorney fees as one part of your closing costs. Keep in mind that this isn’t mandatory and that it depends both on your preferences, as well as on the county regulations. While in some cases both parties have their own attorney, in others only one attorney leads the case. An agreement can be made on who will cover attorney costs.
Additional Closing Costs
Other than these standard expenses, there are some additional closing costs sellers should expect, depending on their situation. Some of these costs include: unpaid homeowners association dues; liens against the property; escrow fees; prorated property taxes; and any debt you may have that are connected to your house. All of these closing costs are up for seller to pay. You might also be liable for paying a home warranty premium, inspection, as well as covering any repair bills in case the inspection finds something wrong with the property.
Sell with Sparks Property Investors LLC to Avoid These Closing Costs!
Luckily for you, there is a way to avoid all costs associated with closing the sale of your property, and that is to sell to a reliable direct buyer in Milwaukee, such as Sparks Property Investors LLC. How is this possible?
Direct buyers don’t have a commission fee, and you don’t have to work with a realtor to sell to them. They’ll pay for all other closing costs, so you don’t have to worry about paying additional fees. If this isn’t enough, they’ll be able to close the sale much faster than traditional buyers – sometimes as fast as 7 days! Also, they’ll pay in cash, so there’s no need to waste time messing around with banks.
An additional good side to working with Sparks Property Investors LLC is that we’re buying houses as-is, so you won’t have to spend any money on repairs, updates, and cleaning costs. While the final offer will likely be lower than if you list with an agent, once you count in all the sale costs you’d be liable for, the final profit usually ends up higher if you work with us. This is why more and more homesellers in Milwaukee are choosing direct sale over a traditional one.