Ellicott City Realtor Catonsville Realtor

Explanation of Closing Costs for Howard County, MD Home Sales.  Below is a sample Estimated Settlement Cost Worksheet for a Home Sale in Howard County.  This estimate is for explanation purposes only.  The costs detailed in this sheet are a sample, and your costs may vary greatly depending on the Lender, Realtor and Title Company you select, and the terms of the contract of purchase.

If you would like a better idea of what it would cost to sell your home, please feel free to contact me.

The figures below were based on a sale price of $225,000, and the buyer selecting an FHA Loan.

Seller Charges

Commission - The commission to sell your home is a negotiable fee, and is based on the sale price of the contract - not the list price, but the final sale price of the negotiated agreement.  In this example, I have used a commission of 6%.  The commission you negotiate with your Realtor may be more or less.

Marketing Fee - this is an administrative fee charged by most local brokers in our area.

Recording Tax / Transfer Tax - These two fees are split by between the Buyer and Seller here in Maryland.  In this example sheet, this amount represents the Seller's half.

Inspections - Here in Maryland, Sellers don't typically pay for inspections, but that can vary with the type of financing the Buyer selects.  For example, with a VA loan, the Seller will pay for the Termite Inspection.

Lender Fees - Also depending on the type of loan, the Seller may be asked or required to pay some or all of the Buyer's Lender Fees.

Miscellaneous Fees - I put this into my Estimated Settlement Costs because most Seller's don't realize that the Lender may charge an ‘Express Fee' or a ‘Wire Fee' to get money to the settlement table.

Credits to Buyer

% of Sales Price or Fixed Contribution - This amount will vary and really depends on what the Seller and Buyer agree to.  This amount also varies with what the market dictates.  These amounts are agreed upon between the Buyer and the Seller during contract negotiations.  How much, if any, a Seller can give the Buyer really depends on the type of financing the Buyer selects.

Mortgage Payoffs

Release of Mortgages - I didn't include mortgage information for this Settlement Sheet, but be aware that your lender may charge a fee for releasing your mortgage of up to $150 per loan.

Other Considerations

This worksheet is a simplified guide, and is intended for general informative purposes only.  This worksheet does not take into account any fees you will incur in the purchase of another home, as well as other charges such as for HOA or Condo fee, ground rent and others that have not been included here.  Your lender and settlement company will provide you with accurate settlement costs once a contract has been agreed to by both the Seller and the Buyer.

Seller Estimated Settlement Costs

Top Seller Tuesdays - Spend a Little, Get a Lot!  A series of weekly tips for sellers that are simple, quick and designed to bring you top value.

• Stained grout will stand out in an otherwise sparkling bathroom - use a bleach pen to clean it or re-grout between tiles.

If you'd like more information about preparing your home for sale, feel free to contact me.

Top Seller Tuesdays - Spend a Little, Get a Lot!  A series of weekly tips for sellers that are simple, quick and designed to bring you top value.

• Replace old, discolored or moldy shower curtains with an inexpensive new one in a neutral or coordinating color.

If you'd like more information about preparing your home for sale, feel free to contact me.

Photo credit:  http://www.flickr.com/photos/playfullibrarian/3807345775/

I Keep Your Goals in Mind - Even When You Don't.  Everyone knows that when buying a home, Buyers often get carried away with emotion.  But you may not know (until you are in the situation yourself), that the same can be true for Homeowners when they are selling their home.  On the day that their home is listed (nearly) every Seller would like to get the most amount of money possible.  But oh how quickly that can change....

Right now I have 3 Sellers that are all in a similar situation.  They all have been on the market for a reasonable amount of time.  They all have had recent price reductions, and are priced either at or below comparable sales in their neighborhoods.  All of the Sellers need these homes sold yesterday.  As a result, all 3 of these Sellers would like to reduce their prices further.

I learned a long time ago, that in Real Estate, there is nothing wrong with a property that the price can't fix.  And as nice as it is to have Sellers that are willing to reduce their prices, I also have to stick to the pledge I made as their Realtor - to get the most amount of money for their home, in the least amount of time, all the while looking out for their best interests and helping them achieve their goals.

With this in mind, I have told each of these Sellers individually that I cannot advise them to reduce their prices further.  Some might think I'm doing this to get myself a higher commission, or to prove to my Sellers that our initial price positioning was correct.  They would be wrong.

What it's about is how the market conditions have changed.  Property is taking longer to sell than any of us initially believed, and there's a lot more competition.  The best advice I can give my Sellers is to be patient.

As a Seller - you and I are on a Team.  Our Team has a marketing plan in place.  It was a plan we agreed to when we listed the home.  We made the plan and agreement before emotions ran high.  It's a plan that makes sense, accounts for your competition, and takes into consideration your goals.  We need to stick to it.

Top Seller Tuesdays - Spend a Little, Get a Lot!  Weekly Advice on Preparing Your Home for Sale.  A series of weekly tips for sellers that are simple, quick and designed to bring you top value.

• Begin the repair process by making your own home inspection.  Walk around the yard and through the house and take notes about the problem areas, needed repairs, items to discard or store, and things to replace.

If you'd like more information about preparing your home for sale, feel free to contact me.

Top Seller Tuesdays - Spend a Little, Get a Lot! A series of weekly tips for sellers that are simple, quick and designed to bring you top value.

• Crayon and marker on walls require treatment before painting the room. Sand the marked area with sandpaper; seal it with shellac and then paint over the spot. This will enable the paint to stick and cover the marks.

If you'd like more information about preparing your home for sale, feel free to contact me.

Top Seller Tuesdays - Spend a Little, Get a Lot!  A series of weekly tips for sellers that are simple, quick and designed to bring you top value.

• Consider renting a bank safe deposit box to store cash and small valuables as long as your house is being shown.

If you'd like more information about preparing your home for sale, feel free to contact me.

I have a house that is currently listed at $475,000.  The home has been at the market for about 60 days, and at the time it was listed, I had numerous comps to support the list price.  The home, although older, has had many updates with newer windows, newer HVAC, a recently finished basement, fully updated kitchen and bathrooms, and is decorated neutrally throughout.  Further, it is districted for a high school that is considered desirable by many in the area.  It is a dream home to list and show.

In the past 60 days, nothing has sold in the neighborhood.  We've had a lot of showings - more than average - and all of the feedback comes back that the price is too high.  After the first 30 days, based on this feedback, the Seller agreed to reduce the price by $25,000.  The Seller is not under any duress, and is simply motivated to get this home sold.  Again, after this price reduction, the feedback was suggesting that the price was too high.

The Seller is again asking to reduce the price (how often does that happen?).  With this next price reduction, we will be under anything else that has sold in the neighborhood by at least $20,000.  If you're a buyer, this is a great deal.

I know this home will sell at some price, but what is the magic number?  Given the current state of the economy, and the Seller's willingness to get this house moved, in terms of price reductions, when is enough enough?

Top Seller Tuesdays - Spend a Little, Get a Lot! A series of weekly tips for sellers that are simple, quick and designed to bring you top value.

• Replacing a cracked and broken walkway with cement stepping stones purchased from a home improvement store is an inexpensive but attractive way to create a new path to the front door.

If you'd like more information about preparing your home for sale, feel free to contact me.

Top Seller Tuesdays - Spend a Little, Get a Lot!  A series of weekly tips for preparing your Maryland Home for sale that are simple, quick and designed to bring you top value.

• Improve safety by ensuring that windows and doors can't slam shut; fixing loose handrails on porches, decks, and stairways; and removing dangerous tools, sharp objects and hazardous materials from the garage.

If you'd like more information about preparing your home for sale, feel free to contact me.