This is a question that many people often wonder about, but budgeting appropriately for closing costs when it comes to listing their home will help to keep you on a safe track for a successful and profitable sale. 

Without a budget the sellers are often blindsided to the reality of closing fees, which can ultimately affect their bottom line.

Here’s the truth…

While buyers are typically responsible for the majority of “fees” associated with a real estate transaction, sellers in the Puget Sounds area should expect to pay on average 2% of the total sales price in closing costs. 

This means, on a typical home priced at $700,000, a seller should anticipate allocating roughly $14,000 toward closing costs. 

If you have equity in your home, these fees will be deducted from your proceeds, however, in some cases, a seller may be required to actually bring money to the closing table in order to cover these expenses.

To prevent that from happening, here are 3 steps you can take:

#1: Talk To Your Real Estate Broker

Before you decide to list your property, meet with your real estate agent to discuss the true cost of selling your home. 

When I work with clients, I always provide them with resources to help them better understand the home selling process. This gives them a better idea of what their responsibilities are as a seller and what they can expect to net from the sale of their home. 

If you don’t have a Real Estate Brokers yet, feel free to reach out any time and I’ll give you the exact resources that I use with all of my clients, so you can make an informed decision as well! 

#2: Understand Your Budget For Closing Costs

Work with your Broker to understand and budget for Closing Costs. Sellers in the Western WA market are typically responsible for the following fees associated with the settlement of real property: Mortgage payoff, title fees, transfer tax, excise tax, recording fees & commission fees. 

#3 Factor in the unexpected

In competitive markets, after a home has been sitting on the market for a while, a seller may offer a concession towards a buyer’s closing costs, as an added incentive. Oftentimes, this practice can make your home seem more appealing to a buyer who’s wavering between your home and another. 

This is another reason why you need to have a great Real Estate Broker who can get your home sold quickly – so you’re never stuck in a situation where you’d have to “pay” a buyer in order to sell your home. It’s rare, but it does happen, and it should be avoided, if possible.