With a little foresight and planning, you may be able to save on closing costs and other expenses when you sell your home.
Closing costs are additional fees associated with selling real property. Fees include things like deed stamps (essentially, a tax on the value of the property), title insurance, appraisals, courier fees and the like. Both buyers and sellers have closing costs they will need to pay, and those costs can range anywhere between approximately 2% and 6% of the sale price.
Fortunately, there are a few things you can do as a seller to reduce your closing costs:
Use Your Existing Survey, If Possible
In NE Floria, it’s usual and customary for the seller to pay for a new survey. This can cost around $350 to $500, depending on the size of your property. However, if you haven’t made any additions or changes to the property (e.g., installed a fence, pool, deck, etc.) since your purchased it, you and the buyer (and the title company) can agree to use the survey you already have, and just have it re-certified to the new buyer.
Take Advantage of a Re-Issue Credit on Your Title Insurance Policy
If you’ve lived in your home for less than 3 years, the title company will often provide a re-issue credit up to the amount of the existing policy. This typically amounts to $3.30 per $1,000 of value on the first $100,000, and $3.00 per $1,000 of value thereafter, up to $1,000,000.
Have a Pre-Inspection Done on Your Home
This one may seem counter-intuitive (paying out of pocket for a home inspection), but it could save you money in the long run. A pre-inspection will alert you to some of the things that may turn up in a buyer’s inspection of your home. As a result, you can address some of those minor issues on your own, and avoid having to pay a handyman or licensed contractor down the road. Or, you may be able to make some needed improvements that add real value to your home, thus justifying a higher asking price. Most importantly, by fixing any issues upfront, you’re better positioned to avoid re-opening negotiations on price, as a buyer’s inspection will be much less likely to uncover any serious, or unexpected, issues.
When you’re ready to sell, be sure to get in touch with us first. Not only can we help you craft a strategy to get your home sold, but we’ll help you find ways to save along the way.