Studio Four8 dives into what the average cost to sell your Ann Arbor home.
The Average Cost to Sell Your Ann Arbor Home
Hi, I am Jeffrey Post, Sara Maddock, and Todd Waller and we are Studio Four8 partners with Berkshire Hathaway HomeServices Snyder & Company in beautiful Ann Arbor Michigan. Today we wanted to talk about what it costs to sell your home, what are the seller costs?
You are probably aware there’s usually commission involved with selling your home, but what are the other fees that you may not be aware of that are unavoidable, like taxes, when you’re getting ready to sell your house. Definitely, and so as Sara pointed out, setting commission aside, there are unavoidable costs associated with the sale of your property.
2% On Top
What we’ve found over time is that the costs associated run to the average of about 2%. So putting aside the commission that you’re paying the Realtors, add about 2% to that total cost and it’s roughly about what the cost of sale will be.
Now some of those costs. . . What do we have guys? We’ve got transfer fees, title insurance, recording fees, there’s also revenue stamps that the county has there as well. Could be HOA fees, a lot of companies charge to transfer their paperwork from one home to the next.
Proration Of Taxes
One of the things that you may not be familiar with but is a standard practice here in Southeast Michigan specifically, is the proration of taxes. So the owner of the property, that would be you, presumably, if you own the house, you’ve already paid your taxes for the year and you’ve got two different payment periods, right? There’s one in December and then there’s one in July. So if you sell your home at any point during the year you will be refunded the money that you already paid for those taxes because those taxes run a full 12 months. So your December payment goes from December to the next December and your July payment goes from July to the next July. If you sell anywhere in between there, you were refunded the amount that you pay for but haven’t utilized.
On rare occasions there might be an instance where your closing time and the buyer’s closing time might not line up perfectly, and there might be a rent back situation. In that case there could be an additional cost of the buyer renting back to stay there, or you renting back to stay there longer than the closing time they were expecting.
Also if you have any liens on your property, perhaps unpaid taxes, perhaps work that was performed on the house that you haven’t paid off yet, all of those liens are going to come up during the title search process and you’ll be expected to pay off those fees at closing. There could be road assessments, again HOA fees, and so on.
One of the tools that we use is a calculator, an online calculator. One that I like is actually produced by Liberty title company. We will put the link for that down in the body of this content. Basically you can get on that, plug in what your remaining mortgage balance is and mostly it’s self populates and you can kind of get an idea of what your total closing costs will be.
But really we would be happy to come out, evaluate your situation, and give you a really good idea and a sense based on what are the taxes, what are the HOA fees, what are the assessments- all those things, so that you can have a really good idea of what it’s actually going to cost you to sell your house.
Because at the end of the day, what’s more important isn’t just selling your house, it’s the net proceeds of the house that you’re selling when you walk away. Bottom line baby. This is Studio Four8 with Berkshire Hathaway HomeServices Snyder & Company here in beautiful Ann Arbor. Thank you so much and if we can ever be of assistance to you know how to reach us. See Ya!