Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com Rochester Real Estate | LOCAL Homes For Sale | Homes for sale in Rochester, NY, LOCAL Rochester real estate listings, market data, REALTOR® info, and high quality content updated every 15 minutes! Wed, 25 Jun 2025 11:50:30 +0000 hourly 1 https://wordpress.org/?v=6.7.2 https://www.rochesterrealestateblog.com/wp-content/uploads/2016/11/cropped-SITE-LOGO-512-x-512-1-32x32.png What Are The Costs Of Selling A Home? – Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com 32 32 June Home Maintenance Checklist: 40+ Must-Do Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/june-home-maintenance-checklist-summer-prep/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20501 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> May Home Maintenance Checklist: 30 Essential Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/may-home-maintenance-checklist/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20484 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> April Home Maintenance Checklist: How To Prepare Your Rochester NY Home For Spring https://www.rochesterrealestateblog.com/april-home-maintenance-checklist/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20364 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> March Home Maintenance Checklist: Get Your New York Home Ready for Spring https://www.rochesterrealestateblog.com/march-home-maintenance-checklist/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20338 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How to Buy a House in New York https://www.rochesterrealestateblog.com/buy-a-house-in-new-york/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19906 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How to Sell a House in New York https://www.rochesterrealestateblog.com/sell-a-house-in-new-york/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19905 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Risks of Buying a Non-Warrantable Condo In New York: What You Need to Know https://www.rochesterrealestateblog.com/non-warrantable-condo/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19796 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Builders Should Know About Spec Construction Loans In New York https://www.rochesterrealestateblog.com/builders-spec-construction-loans/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19795 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Moving To The Finger Lakes Region Of New York | Guide To Relocating To The Finger Lakes https://www.rochesterrealestateblog.com/moving-to-the-finger-lakes-region/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19875 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Navigating the Numbers: The Pros and Cons of Using Online Home Value Estimators For New York Real Estate https://www.rochesterrealestateblog.com/pros-cons-online-home-value-estimators/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19794 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Role of Location in Home Valuation In New York https://www.rochesterrealestateblog.com/role-of-location-home-valuation/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19768 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Lowe’s vs U-Haul: A Review of Truck Rental Companies https://www.rochesterrealestateblog.com/lowes-vs-uhaul/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19758 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Understanding the Importance of a Seller’s Property Condition Disclosure https://www.rochesterrealestateblog.com/property-condition-disclosure-statement/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19632 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What are Delayed Showings and Negotiations in Real Estate In New York? https://www.rochesterrealestateblog.com/delayed-showings-negotiations/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19547 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 8 Viable Tactics to Selling Your Home and Moving Out of State https://www.rochesterrealestateblog.com/selling-home-moving-out-of-state/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19542 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Unconventional Methods for Selling a House: Thinking Outside the Box https://www.rochesterrealestateblog.com/unconventional-methods-for-selling-a-house/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19519 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Should I Sell My House Off Market: Pros and Cons Explained https://www.rochesterrealestateblog.com/sell-house-off-market/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19503 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What is PITI and How Does It Affect Your Mortgage https://www.rochesterrealestateblog.com/what-is-piti/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19498 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How To Set A Home Renovation Budget https://www.rochesterrealestateblog.com/home-renovation-budget/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19490 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How Does A Co-Borrowers Credit Scores Affect A Home Purchase? https://www.rochesterrealestateblog.com/co-borrower-credit-score/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19474 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> New Construction Final Walk-Through Checklist: Ensuring a Seamless Home Inspection https://www.rochesterrealestateblog.com/new-construction-final-walk-through/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19458 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Essential Tips for Pumping a Septic Tank: What You Need to Know https://www.rochesterrealestateblog.com/pumping-a-septic-tank/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19450 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Can You Submit Multiple Offers On Homes At Once – A Legal And Ethical Analysis https://www.rochesterrealestateblog.com/multiple-offers-on-homes-at-once/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19414 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How to Get Your Home Photo Ready for Real Estate Listings https://www.rochesterrealestateblog.com/real-estate-photo-ready/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19409 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Does a Home Builder’s Warranty Cover? https://www.rochesterrealestateblog.com/home-builders-warranty/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19394 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> July 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/july-2023-rochester-ny-real-estate-market-update/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19403 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Who Pays Real Estate Commission When You Buy or Sell a Home https://www.rochesterrealestateblog.com/real-estate-commission/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19366 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Quitclaim Deeds: What You Need to Know https://www.rochesterrealestateblog.com/quitclaim-deeds/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19358 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What to Know About Selling a Home As Is for Cash https://www.rochesterrealestateblog.com/selling-home-as-is-cash/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19347 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How to Know if My House Has Paranormal Activity https://www.rochesterrealestateblog.com/is-my-house-haunted/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19342 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Why Find The History of a House https://www.rochesterrealestateblog.com/find-history-house/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19316 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> June 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/june-2023-rochester-ny-area-real-estate-market-update/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19313 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Does a Real Estate Lawyer Do? https://www.rochesterrealestateblog.com/real-estate-lawyer/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19181 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> May 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/may-2023-rochester-ny-area-real-estate-market-update/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19162 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What to Know About Buying a Home For The First Time https://www.rochesterrealestateblog.com/buying-home-first-time/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19058 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> <strong>What Should a Buyer Look For at a Home Inspection?</strong> https://www.rochesterrealestateblog.com/what-look-for-home-inspection/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18983 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Companies That Buy Houses For Cash Reviewed https://www.rochesterrealestateblog.com/companies-buy-houses-for-cash/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18889 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Does Home Staging Work and What is The Cost? https://www.rochesterrealestateblog.com/does-home-staging-work/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18814 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What to Avoid When Getting a Mortgage https://www.rochesterrealestateblog.com/avoid-when-getting-mortgage/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18797 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> <strong>5 Options For Replacing a Roof Reviewed</strong> https://www.rochesterrealestateblog.com/replacing-roof/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18771 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Are Restrictive Covenants in Real Estate? https://www.rochesterrealestateblog.com/restrictive-covenants/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18714 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Can The Court Force The Sale of Your House in Divorce? https://www.rochesterrealestateblog.com/court-force-sale-divorce/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18693 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Real Estate Agent vs. Broker: What&#8217;s The Difference? https://www.rochesterrealestateblog.com/real-estate-agent-vs-broker/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18650 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How To Determine Square Feet In Your House For More Accurate Property Estimates https://www.rochesterrealestateblog.com/determine-square-feet/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18167 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 3 Things That Often Results in a Real Estate Agent Getting Sued https://www.rochesterrealestateblog.com/real-estate-agent-sued/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18133 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Top 5 Types Of Home Inspections Buyers Should Consider https://www.rochesterrealestateblog.com/5-types-home-inspections/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18119 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Pros And Cons Of Rent To Own Homes: What You Need To Know https://www.rochesterrealestateblog.com/pros-cons-rent-own-homes/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18104 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 5 Smart Things To Do Before Moving That Will Help Ease Your Transition https://www.rochesterrealestateblog.com/things-before-moving/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18084 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How to Become a Real Estate Agent https://www.rochesterrealestateblog.com/become-real-estate-agent/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18071 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Renting A House Or An Apartment: Which Is The Better Option https://www.rochesterrealestateblog.com/renting-house-apartment/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17871 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The 5 Most Important Factors To Consider When Buying A House https://www.rochesterrealestateblog.com/5-factors-buying-house/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17851 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Buyers And Sellers Need To Know About An Appraisal Gap https://www.rochesterrealestateblog.com/appraisal-gap/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17827 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Pros And Cons Of Renting With Roommates – What You Need To Know https://www.rochesterrealestateblog.com/renting-with-roommates/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17794 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 6 Things You Should Know About Buying Land https://www.rochesterrealestateblog.com/things-know-buying-land/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17773 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How Long Should Home Sellers Wait To Respond To An Offer On Their Home? https://www.rochesterrealestateblog.com/home-sellers-wait-respond-offer/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17745 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How To Buy A House With A Low Credit Score https://www.rochesterrealestateblog.com/how-to-buy-a-house-with-a-low-credit-score/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16819 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Things To Consider When Shipping A Car https://www.rochesterrealestateblog.com/things-to-consider-when-shipping-a-car/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16248 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Home Depot Truck Rentals: What to Know Including Pricing https://www.rochesterrealestateblog.com/home-depot-truck-rentals-what-to-know-including-pricing/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16156 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 16 Things To Do Before Listing Your Home For Sale https://www.rochesterrealestateblog.com/16-things-to-do-before-listing-your-home-for-sale/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16138 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Biggest Home Inspection Mistakes to Avoid https://www.rochesterrealestateblog.com/biggest-home-inspection-mistakes-to-avoid/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16112 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How Your Credit Score Impacts Your Ability To Buy A House https://www.rochesterrealestateblog.com/how-credit-score-impacts-buying-house/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16086 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Top Winter Home Selling Mistakes | 7 Errors Made While Selling A House During The Winter https://www.rochesterrealestateblog.com/top-winter-home-selling-mistakes/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16051 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Top Winter Home Buying Mistakes | 11 Errors Made While Buying A House During The Winter https://www.rochesterrealestateblog.com/winter-home-buying-mistakes/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16013 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Address Change Form Should I Use At The Post Office? https://www.rochesterrealestateblog.com/address-change-form-post-office/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15981 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Does Contingent Status Mean in Real Estate? https://www.rochesterrealestateblog.com/what-does-contingent-status-mean-real-estate/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15956 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> DIY Renovation Ideas For Your Backyard https://www.rochesterrealestateblog.com/diy-renovation-ideas-backyard/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15937 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How to Rent Your First Apartment Guide https://www.rochesterrealestateblog.com/how-to-rent-an-apartment/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15931 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Tips For Selling A Home Virtually https://www.rochesterrealestateblog.com/tips-selling-a-home-virtually/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15907 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Complete Winter Storage Checklist For Your Belongings https://www.rochesterrealestateblog.com/winter-storage-checklist/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15885 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Should I Waive My Home Inspection When Buying A House? https://www.rochesterrealestateblog.com/should-i-waive-my-home-inspection/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15870 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Biggest Self Storage Companies Reviewed https://www.rochesterrealestateblog.com/biggest-self-storage-companies/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15836 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Earnest Money and House Deposits Explained https://www.rochesterrealestateblog.com/earnest-money-house-deposits-explained/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15760 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Moving Mistakes To Avoid https://www.rochesterrealestateblog.com/moving-mistakes-to-avoid/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15568 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Top Mortgage Myths | Demystifying Common Home Loan Misconceptions https://www.rochesterrealestateblog.com/top-mortgage-myths/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15102 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> First-Time Home Buyer Mistakes to Avoid https://www.rochesterrealestateblog.com/first-time-home-buyer-mistakes/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14815 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 10 Tips For Adding Appeal To Your Home This Summer https://www.rochesterrealestateblog.com/10-tips-adding-appeal-to-home-this-summer/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14237 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Exploring The Merits of Smart Home Technology When Selling a Home https://www.rochesterrealestateblog.com/smart-home-technology-selling-a-home/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13782 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Top Frequently Asked Questions From Home Sellers https://www.rochesterrealestateblog.com/top-frequently-asked-questions-home-sellers/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2424 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> First Time Home Buyer Programs In Rochester NY &#8211; Updated January 2025 https://www.rochesterrealestateblog.com/first-time-home-buyer-programs/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock http://rochesterrealestateblog.com/?p=580 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How New Doors &#038; Windows Can Boost Your Home Value https://www.rochesterrealestateblog.com/how-new-doors-windows-boost-your-home-value/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13643 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Top 5 Things To Know When Flipping Your First House https://www.rochesterrealestateblog.com/5-things-to-know-when-flipping-your-first-house/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13574 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Are The Best Mortgage Options for Self Employed Borrowers? https://www.rochesterrealestateblog.com/mortgage-options-for-self-employed-borrowers/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13450 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Top 10 Best Places To See Christmas Lights In Rochester NY https://www.rochesterrealestateblog.com/top-10-best-places-see-christmas-lights-rochester-ny/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=10236 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Are The PROs And CONs Of Multifamily Homes? https://www.rochesterrealestateblog.com/what-are-the-pros-and-cons-of-multifamily-homes/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13219 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Low-Cost Home Improvements Should You Make Before Selling Your Home? https://www.rochesterrealestateblog.com/low-cost-home-improvements-you-should-make-before-selling-your-home/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13114 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 15 Things Millennial Home Buyers Look At While Buying A House https://www.rochesterrealestateblog.com/15-things-millennial-home-buyers-look-at-while-buying-a-house/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13028 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How Does A Fence Increase The Value Of Your Home https://www.rochesterrealestateblog.com/how-does-a-fence-increase-the-value-of-your-home/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12995 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 5 Simple &#038; Low Cost Fixes To Make Your Home More Appealing To Buyers https://www.rochesterrealestateblog.com/5-simple-and-low-cost-fixes-to-make-your-home-more-appealing-to-buyers/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12779 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How To Improve A Homes Curb Appeal In Rochester NY https://www.rochesterrealestateblog.com/how-to-improve-a-homes-curb-appeal-rochester-ny/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12665 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 7 Ways to Create an Energy-Efficient Home While Conserving Your Budget https://www.rochesterrealestateblog.com/7-ways-create-an-energy-efficient-home/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12633 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Hiring Movers Vs. Moving Yourself | The PROs &#038; CONs Of Each https://www.rochesterrealestateblog.com/hiring-movers-vs-moving-yourself/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12592 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Should You Pay Off Student Loans Before Purchasing a Home? https://www.rochesterrealestateblog.com/pay-off-student-loans-before-purchasing-a-home/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12531 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Should I Build A New Home Or Buy An Existing Home? https://www.rochesterrealestateblog.com/should-i-build-a-new-home-or-buy-an-existing-home/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2497 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Buying A Condo Vs. Renting A Condo | What Are The PROs &#038; CONs? https://www.rochesterrealestateblog.com/buying-a-condo-vs-renting-a-condo/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12402 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 9 Money Saving Moving Tips | How To Cut Costs When Moving https://www.rochesterrealestateblog.com/9-money-saving-moving-tips/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12341 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How to Create a Proper Home Maintenance Checklist https://www.rochesterrealestateblog.com/how-to-create-a-proper-home-maintenance-checklist/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12300 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 5 Tips For Tenant Screening | How To Weed Out Bad Tenant Applicants https://www.rochesterrealestateblog.com/tips-for-tenant-screening/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12291 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Best Social Media Blogs For Real Estate From 2017 https://www.rochesterrealestateblog.com/best-social-media-blogs-2017/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12045 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Best Home Improvement Blogs From 2017 | Advice For Home Remodeling https://www.rochesterrealestateblog.com/best-home-improvement-blogs-2017/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12044 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
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About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Best Mortgage Blogs From 2017 | Advice For Home Financing https://www.rochesterrealestateblog.com/best-mortgage-blogs-2017/ Tue, 17 May 2016 11:15:22 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12043 How Much Does It Cost To Sell A Home? [caption id="attachment_9140" align="aligncenter" width="450"]What Are The Costs Of Selling A Home What Are The Costs Of Selling A Home[/caption] Many homeowners who are thinking about selling their home don't realize there are specific costs of selling a home.  Due to the fact that many homeowners don't realize this, asking about the costs of selling a home is one of the most frequently asked questions about selling a home. It's very important that if you're thinking about selling your home, you understand what the costs of selling a home are and also why you're paying them.  One of the worse feelings for a home seller is to find out they have to fork up a couple thousand dollars for closing expenses that they had no idea existed. As one of the top Realtors in Rochester NY, I find it extremely important to explain to a seller upfront what the potential costs of selling a home could be.  It makes my job much easier when I don't have to backpedal and explain to a seller why they are paying for specific things while we are reviewing a purchase contract. Below you will find out what the costs of selling a home are and why they are potentially incurred.  Keep in mind that some of the costs of selling a home that are discussed below may not apply to all home sellers.  By understanding the costs of selling a home that are listed below, you greatly reduce the chances that you will be shocked when reviewing a closing statement.

Brokerage Fees / Real Estate Commissions

First and foremost, brokerage fees, which are frequently referred to as real estate commissions, are negotiable.  In the majority of real estate transactions, a seller is responsible for paying the costs of real estate commissions.  This is sometimes a difficult pill to swallow for sellers, especially first time home sellers, but it's important to keep in mind that when a seller bought the home they are trying to sell, it's likely the previous owners covered the costs of real estate commissions. Since real estate commissions are negotiable, it's very important that you understand before signing a listing agreement that you know what the percentage or dollar amount will be for the commissions.  One of the most important questions to ask real estate agents when selling a home relates to the brokerage fees they charge.  Once an amount is agreed upon, it's critical to get it in writing, which is usually done by signing an exclusive right to sell contract (in New York). Since real estate commissions can be a substantial cost, it's important you know exactly what services you're receiving.  A 6% brokerage fee on a $500,000 sale would be $30,000 in commissions, so knowing exactly what real estate marketing strategies the agent is going to use is critical.  It isn't always the best decision for a seller to hire the agent who offers the lowest percentage or amount of commission as this agent may not provide a level of service that is required to get a home sold in the shortest amount of time and for top dollar.

Seller Concessions

One of the costs of selling a home that some sellers may encounter are known as seller concessions.  Seller concessions in real estate allow a seller to contribute money towards a buyers closing expenses and down payment. Some sellers find it very difficult to contribute money towards a buyers closing expenses and down payment, however, without seller concessions it is possible a buyer may not be able to afford to buy a home and ultimately, the seller isn't able to sell their home.  There are many different types of mortgages that a buyer can choose from and depending on the type of mortgage, a buyer can receive different percentages of seller concessions. For example, if a buyer is going to be getting an FHA loan, they are able to receive a seller concession up to 6% of the purchase price of the home.

Title Search Cost

[caption id="attachment_9142" align="aligncenter" width="450"]A Title Search Is A Cost Of Selling A Home A Title Search Is A Cost Of Selling A Home[/caption] Anytime a piece of real estate is transferred, a title search will be completed.  The cost to complete this search is customarily one that is covered by a home seller.  The cost of a title search in the Greater Rochester NY area is between $400 - $600, depending on a variety of circumstances. The purpose of a title search is to ensure the seller has the right to transfer ownership of the property and also discover whether there are any claims, errors, assessments, debts, or other restrictions to the property. Recently while selling a home in Webster, NY, a review of the title discovered that there was an outstanding mortgage that was never satisfied from the owner previous to the seller.  This had to be rectified before the buyers lender would accept the title and release the funds to the buyer to be able to purchase the home.

Instrument Survey Cost

The majority of mortgage companies will require an instrument survey to be completed prior to approving the funds to purchase a home.  The instrument survey is one of the costs of selling a home that the majority of sellers will cover. The purpose of an instrument survey is to show the various improvements on a piece of land such as a garage or the home itself.  Additionally, an instrument survey shows any variances on a property as well as any boundary line encroachments. The cost of an instrument survey depends on several factors, including the amount of acreage and the topography of the land.  The general cost of an instrument survey in the Greater Rochester NY area is ranges between $400 - $600.

Home Warranty

One of the optional costs of selling a home are home warranties.  When selling a home, a seller has the option to offer prospective buyers a home warranty.  It's important that when selling a home you determine whether offering a home warranty is worth it or not. Many home warranties will provide coverage for the seller while the home is listed for sale on many of the major components of a home such as the HVAC systems, electrical systems, and plumbing systems.  The peace of mind that this offers a seller can be worth offering the home warranty alone.  A home warranty also can help put a buyer at ease since they are receiving coverage for a specified amount of time after closing on the homes major components. Depending on the warranty company and the size of a home, the cost of a home warranty will vary.  The cost of a home warranty for a single family home that is under 2,500 square feet is around $500.  Again, offering a home warranty is one of the optional costs of selling a home, so it's important to weigh the benefits and drawbacks of offering it.

Transfer Taxes

[caption id="attachment_9144" align="aligncenter" width="450"]Transfer & Capital Gain Taxes Are Home Selling Expenses Transfer & Capital Gain Taxes Are Home Selling Expenses[/caption] When selling a home, there are a variety of taxes that are involved and paid.  One of the costs of selling a home are transfer taxes.  Transfer taxes are paid to the local jurisdiction in which the property is being transferred in exchange for making the transaction legal and official. When selling a home, you need to know what the tax percentage or amount is for transfer taxes.  In the Rochester NY real estate market the transfer tax is generally $4.00 per thousand.  For example, if a home is sold for $200,000, the seller would pay $800.00 in NYS transfer taxes.  To find out what the transfer tax percentage or amount is, it's recommended that you visit your States website for information on real estate transfer tax.

Capital Gain Taxes

Depending on the amount of profit a seller makes on the sale of their home will determine whether or not they will be required to pay capital gain taxes.  Capital gain taxes require a seller to pay taxes if they sell their home for a substantial amount more than they purchased their home for, but there are exclusions. If you're selling your home and file your taxes as a single, capital gain taxes are not required on any amount under $250,000.  For married couples, capital gain taxes are not required for any amount under $500,000.  When figuring out the gains from a sale, it's possible for a seller to use expenses such as home improvement projects as deductions. For example, if a seller bought their home for $150,000 and sells their home for $450,000 but put $100,000 towards improvement projects, their gain would be $200,000 which means they would be exempt from paying capital gain taxes. If required to pay capital gain taxes, the amount will depend on your tax bracket.  If you are unsure whether you will be required to pay capital gain taxes or not, you should consult with your accountant.

Existing Mortgages and/or Home Equity Loans

Paying off existing mortgages and/or equity loans on a home are often the biggest cost of selling a home.  If you're selling a home and do not have a mortgage or home equity loans, this cost can be disregarded. When selling a home, you need to realize that the balance of an existing mortgage or equity loan may not be the payoff amount.  One of the most important things to do before selling a home is to find out what the payoff balances are on any mortgages or loans. The sale price and the amount of the other costs of selling a home need to be less than the payoff amounts, otherwise, you may need to come up with money at closing or potentially may need to consider a short sale.

Cost Of Repairs From Various Inspections

Another potential cost of selling a home are repairs that are negotiated as a result of various inspections of a home.  There are tons of reasons why home buyers have home inspections and a variety of other inspections. It is feasible that there will be no additional costs from various inspections, however, it's important to be aware of the potential additional costs of selling a home that can arise from inspections being completed on your home.

Final Thoughts

It's pretty well known that there are costs associated with buying a home, but the same cannot be said about the costs of selling a home.  As you can see from the above information, there are many costs of selling a home that you need to be aware of. A top real estate agent will provide you with what is called a sellers net sheet so that you can see what the potential costs are to selling your home.  Keep in mind that some of the costs cannot be predicted, such as repairs from various inspections.

Other Top Home Selling Resources

Are you thinking about selling your Rochester, NY home?  The above information about the costs of selling a home in Rochester NY can help eliminate surprises at the last minute.  It's important when interviewing top Rochester NY real estate agents you ask about the costs of selling a home.  If you haven't hired a top agent yet, contact me and I'd love to share my expertise and knowledge about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About Rochester's Real Estate Blog: The above article "What Are The Costs Of Selling A Home?" is hosted by the Keith Hiscock Sold Team (Keith & Kyle Hiscock), the owners of Rochester's Real Estate Blog. With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>