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For some reason, I couldn't find an answer from googling, so here goes...
Let's say that I want to sell a house for $200K and the selling fees are the standard 7%. So the selling fees would be a whopping $14,000. Well, if I am not comfortable with paying the selling fees from my home equity and/or liquid cash, can I finance them and make monthly payments? I just think it's absolute insane to pay that much money all in lump sum. It's just too much of a hit at once.
The commissions and any other moneys owed (pro-rated property taxes for example) are deducted from the proceeds of your sale. Assuming you aren't underwater or with a minimal amount of equity....you wouldn't be "writing a check" for 14k......it would simply be a debit on the closing documents.
Selling the house for 200k......say you owe 130k on the mortgage and 14k in commissions/taxes/whatever fees may apply in your state/local area......you walk away with 56k in hand. Are you saying you'd rather walk away with 70k in hand and then "pay back" the 14k in installments afterwards? Or are you in a low-equity/underwater situation?
^^^This. Any fees and expenses are deducted from the proceeds of the sale. So you get your sale price less all these expenses.
If as above poster says, you owe more to your lender on your mortgage than you receive from the proceeds of the sale, then yes, you might have expenses to pay.
The commissions and any other moneys owed (pro-rated property taxes for example) are deducted from the proceeds of your sale. Assuming you aren't underwater or with a minimal amount of equity....you wouldn't be "writing a check" for 14k......it would simply be a debit on the closing documents.
Selling the house for 200k......say you owe 130k on the mortgage and 14k in commissions/taxes/whatever fees may apply in your state/local area......you walk away with 56k in hand. Are you saying you'd rather walk away with 70k in hand and then "pay back" the 14k in installments afterwards? Or are you in a low-equity/underwater situation?
Yes, I'd rather walk away with $70k in hand and pay back the $14K in monthly installments. Is this possible?
Yes, I'd rather walk away with $70k in hand and pay back the $14K in monthly installments. Is this possible?
If you were the brokers (both seller and buyer) and you had been working for 2, 3, or even 12 months or more to help your client buy or sell a house, would you want to wait another year to get the money when you knew the seller had the money to pay you on the say of closing? How does that make sense? Plus there are other closing costs that have to be paid. Why on earth would a real estate broker want to foot those costs for you until you feel good and ready to pay them?
Technically there is no set, standard commission. Many offices have a percentage goal, but ultimately it is always negotiable between the seller and the listing agent.
I assume the OP is talking about standard fees plus closing costs and is just doing an estimate. Obviously commission can be negotiated but the OP might still have to make concessions to make a sale like pay part or all of the buyer’s closing costs.
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