Estimating Your Net Proceeds
Once List it 4 Less provides you with an accurate Comparative Market Analysis, you will have a rough idea of how much cash you might walk away with when the sale is completed. This can be particularly useful when you start shopping for your next home.
Traditionally, certain costs are attributed to either buyers or sellers, depending upon local practices. These “splits,” as they’re called, can vary from state to state and area to area. The outline below is simply a rough estimate of what you might expect to pay at closing. To estimate your closing costs, and how much you can expect to walk away with after closing, subtract the applicable costs below from your expected sales price.
In WV, Sellers Traditionally Pay The Following Costs
(Subtract from sales price as applicable):
- payoff figure on your present loan(s)
- broker’s commission
- prepayment penalty on your mortgage (these days, this penalty is very rare)
- attorney’s fees (for the sellers in WV, approximately $150 Deed prep fee)
- unpaid property taxes
- transfer tax fees – Most counties in WV, including Marion, Monongalia, and Harrison, charge $4.40 per $1,000.00 of the sales prices. Some counties such as Preston, charge $6.60 per $1,000.00. On a $100,000.00 house in Marion County, the transfer tax fees would be $440.00. This is also sometimes called “excise tax” or “Documentary Stamps/Doc Stamps.” To calculate: Sales Price ÷ 1,000 x $4.40 = tax.
- home warranty, if offered (usually about $600)
- selling bonus, if offered
- buyer’s closing costs, if offered (see below)
Buyer’s Costs – Buyers Bear The Brunt Of Expenses In A Home Purchase/Sale.
In West Virginia, the buyer traditionally pays for the items listed below, in addition to their lender’s mortgage application costs, and other fees and closing costs. It is not unusual for buyer’s closing costs to run between $3,000 and $6,000, PLUS their down payment. If you wish to assist your buyer with any of these costs subtract, as applicable, from the contract sale price. For the sake of simplicity, it may be simpler to offer to pay up to a certain amount toward their total down payment and costs.
- title insurance premium
- down payment
- survey fees
- appraisal fees
- inspections and repairs for termites, etc.
- Homeowner Association transfer fees and document preparation
- home protection plan
- attorney’s fees
- natural hazard disclosure report (flood certification)
Closing Costs Are Not Carved In Stone.
You and your buyer can agree on any arrangement that suits you, no matter what local practice dictates. Heritage Real Estate will assist you in estimating what your final closing costs will be.