What To Expect for Closing Costs as a Seller in Massachusetts.
Most home Sellers want to know, how much will it cost to sell my house?
A common mistake that many homeowners fall into when putting their home on the market is thinking that the price they sell for represents the amount of money they can expect to receive after closing.
I don’t want to be bearer of bad news but the selling price is not what you will be taking to the bank even if the Buyer pays exactly what you are asking. You should expect to pay closing costs when selling your home. What are typical closing costs?
- The real estate agent’s commission
- The real estate attorney’s fees
- State excise tax stamps
- Smoke and carbon monoxide detector certification
- Septic systems expenses (if applicable)
- Old mortgage discharge fees
- Overnight delivery charges
- Home Owner association fees (condos)
The Real Estate Agent’s commission
Real Estate brokers in Massachusetts typically charge 6% of the selling price of your home. This charge will usually bring a ready, willing and able Buyer to the table. The listing will be posted in several websites, MLS and will be exposed to the most people to sell for the highest price possible.
The Real Estate Attorney’s fee
Usually, both the buyer and seller have an attorney to help with the closing process. One main reason is that there are risks associated with the sale-circumstances that could delay or cancel the sale or increase the cost. Each lawyer’s job is to transfer as much of that risk as possible to the other party.
Your lawyer can also explain relevant legal matters to you, do some of the legwork of making financial arrangements, and draw up the legal documents involved with the sale. If you can’t be present at the signing, your lawyer can also sign paperwork on your behalf.
State Excise Tax Stamps
Massachusetts has what amounts to a sales tax on real estate. The excise tax is set at $4.56 per every 1000 dollars a buyer gives you. Some other communities like Nantucket or Martha’s Vineyard will have additional taxes.
Smoke and Carbon Monoxide detector certification
Each home sold in Massachusetts must have a certificate issued by the local fire department stating the smoke and carbon monoxide detectors are in the proper place and are in working order. The certificate is only good for 60 days.
Those homes that have a septic system must have it inspected for a sale, according to the law. Failing the inspection will not delay the sale, but you must put up money to fix the problem. Whether the system passes or not, the inspection itself costs money. It is possible to have the inspection done well in advance of the sale, but the Certificate of Compliance is only good for 2 years. This is called Title V in Massachusetts.
The balance of the fees can vary from closing to closing.
If you would like a more in depth explanation of any of these fees, please contact M. Celata Real Estate 781-289-7500 or Maureen at firstname.lastname@example.org for a completed picture of what your costs will be when you sell your home and what you will deposit in your bank account.
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