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Closing Costs to Sell A House- Customary closing costs paid by a seller - YouTube
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Closing cost to sell a home. What are they?
What do they consist of? That's what
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we're going to talk about today in just
a moment. Welcome to my channel! My name
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is Karen Jackson I'm a real estate agent
in Renton Washington with John L Scott
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if this is the first time viewing my
channel, thank you for watching! Please be
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sure to go and subscribe so you don't
miss out on any tips. I put them out
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weekly for buyers and sellers. So what
are closing costs to sell a home? What do
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they consist of? When I meet with sellers
I find that many are not aware of the
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cost involved in selling a home so I
want to be sure to educate you all on
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just what to expect. Now I'm going to
assume you're going to hire a real
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estate agent because without one you
could find yourself in a maze of confusion
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or worse yet you could lose money, which
we don't want you to do! These are the
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expenses you can expect to pay. These are
all paid at closing after your home
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sells. The first expense we will talk
about is real estate commission. The
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seller is responsible for real estate
commission. The seller pays a contracted
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Commission amount to the listing firm
the listing firm then offers a portion
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of that contracted compensation to a
buyer's agent to represent a buyer to
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purchase the home. This is typically half
of the set commission and no the listing
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agent does not get to keep it all. It
gets split many ways. Another expense is
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excise tax
currently that rate is 1.78 percent of
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the sales price. Starting January 1st
2020 excise tax will be figured with a
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tiered strategy. Please see my excise tax
video you can see the link at the top of
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the screen. Title and escrow fees
are another expense. These are two very
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important companies. Escrow prepares the
closing documents and the transfer of
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ownership. Title ensures the transfer of
title is clear and takes place
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efficiently and title insurance offers a
protection against claims from defects
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in title. Any loan balances liens or
judgments will be paid off as well. Some
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other expenses are wire, courier, document
fees, recording fees with the county. If
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your home has a homeowner's association
there's often a transfer fee and that
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fee is often paid by the seller. It
depends on what is negotiated and what
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the homeowners association document
states. Homeowners dues will also be
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prorated at closing. You are also
responsible for property taxes during
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your ownership if taxes have already
been paid then you would get a refund
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for the amount of tax as you have paid
in that covers the buyer's ownership
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timeframe . One other cost that is
completely negotiable is the buyers
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closing costs many times buyers will ask
the seller to pay for the buyer's cost
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to close on the home. A good portion of
buyers are first time home buyers and most
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people don't put 20% down anymore most
people just don't have $100,000 sitting
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in the bank to buy a home so because of
this a buyer may ask the seller to pay
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for all or a portion of their costs
again this is negotiable and you can
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talk with your real estate agent about
the pros and cons of it. I think that
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covers the expenses - if you are
considering selling your home soon or in
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the near future your first step is to
figure out how much your home is worth
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and what you will net. Check out my video
on home valuations this will give you a
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little bit more information.
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