When you’re the seller, there are still certain expenses that you need to be prepared for. The benefit of a cash sale is these expenses will be much cheaper than a traditional sale. Before closing, you should be aware of what’s required so you can be prepared to pay.
Repair Costs
In many cash sales, the buyer will take the home as is. This means you don’t need to do any repairs or updates before selling. However, you may still choose to make a few minor repairs. When cash buyers make an offer, they do it based on the value of your home and they may even deduct the cost of repairs from their offer. Doing a few repairs before selling can help you get a higher sale price. The costs of repairs will vary depending on the work you do. More repairs result in a higher cost.
Local and State Taxes
In every sale, there are going to be taxes that need to be paid. What these taxes are will depend on your state. Each state has its own requirements and some of these requirements can become more specific to your local area. One of the most common taxes required of you will be the title transfer tax. The money from this tax will depend on the state’s tax laws. You should also account for the property taxes of your home. Depending on the time of the month in which you sell, you may be responsible for your property taxes for one more month or you may prorate the property taxes.
Fees
Several fees come with any home sale. Most of these fees go toward paying anyone who assisted with the sale. The fortunate thing about cash sales is you don’t need to factor in the commissions of any real estate agents since they are typically not involved in a cash sale. You will, however, need to pay fees to the escrow service you work for as well as the title company, and any attorneys involved in the sale. You also will need to pay a recording fee which covers the cost of filing that the title of your home has been transferred to the buyer.
In a cash sale, there are fewer costs overall and the specific costs depend on your circumstances. It’s helpful to do research beforehand so you can know what you’ll need to pay. Working with an experienced cash buyer can help you to know what to expect.
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