What Do I Pay When Selling My Home to a Cash Buyer?
No matter how you sell your home, there are going to be some associated costs. The benefit of a cash sale is you actually have fewer costs than you would in a traditional home sale. Understanding these costs can help you prepare for selling your home to a cash buyer.
Potential Repair Costs
Many cash buyers will actually purchase homes in their current condition, so you don’t always need to worry about making repairs or renovations. However, if your buyer is looking for updates or if you simply want to increase the value of your home, you may still go through with making repairs. Renovations of any kind will typically be expensive. It’s common for projects to go over budget and they can take several months to complete. If you plan on making repairs, consider how this will affect your finances as well as your timeline for selling.
One of the major expenses of selling a home includes the closing costs. A portion of the closing costs will be certain taxes. These taxes will vary depending on what state you’re in and what the local laws are. Typically, you will have to pay some sort of transfer tax. This tax goes along with the cost of the overall transaction and the rate depends on where you are. In some states, you may also have to pay prorated property taxes. The cost of this will also depend on the local laws in your state.
Finally, there are several fees you need to pay as part of closing on the sale. The fees you pay depend on the circumstances of your sale. Common fees you pay include fees paid to the escrow service, attorney fees (if an attorney is used), and HOA fees. There are also general closing fees that you will need to complete the sale. An example would be a recording fee which is when the escrow agent, attorney, etc. files the deed which transfers the property to the buyer.
A cash sale is significantly cheaper than a traditional sale, largely because you don’t need to pay real estate agent commissions. However, there are still costs to be aware of. Make sure you are financially prepared for these costs.
Are you trying to find a cash buyer for your home? Click here to receive an offer from Atlas Residential.