Fees made easy.
When you think about buying or selling a home, unexpected prices and fees can catch you off guard if you are unprepared.
When you select a real estate agent to represent you, they will be your advisor throughout the whole process, and they should inform you of what to anticipate. Often, we think the home purchase is all we have to worry about, but there are other essential factors. From commissions to having the locks changed before you move in, there are many costs to prepare for when you are planning to make a move.
One factor is when you hire an agent to represent the sale of your home or purchase; the agent will negotiate a commission. Most of the time, this ranges from 4% to 6%. If there is an agent is on both sides of the sale, a buyer’s agent and a seller’s agent, the commission is typically split equally—half for the buyer’s agent and half for the listing agent. When doing the negotiating remember the agent’s commission is then split with their real estate agency. This helps cover expenses like advertising of your listing through various marketing platforms and methods, a professional marketing team to place your home in front of as many potential buyers as possible, professional photos of your home, and office space for you to meet with your agent throughout the process. Be sure to inquire on back office support and marketing support the agent has in place through their brokerage.
If a buyer requests inspections, they will pay for the inspecting services. If inspection findings vary from what the original offer to the seller anticipated, you can ask the seller to cover the updated expenses or reduce the selling price, or either party can choose not to proceed with the sale. Then, there are closing costs that include the title company fees, prorated insurance and taxes for the month. Most closings are similar, but each lender and title company have their own systems.
As a buyer once you take possession of the home one of the first expenses you may choose is to have a locksmith come to the home to update the locks and the keys for safety and security. While keys will be provided at the closing table, you can confirm that no others have access by accomplishing this update. Both the seller and buyer will typically endure packing and moving expenses. The buyer will also acquire home insurance and have the option to have title insurance. This is especially important to get in order if the buyer is borrowing.
Overall, you can see and imagine that different expenses arise throughout the process. When you are making a significant purchase or sale of a home you can expect a few things to come up that could mean an expense, but if you plan ahead they shouldn’t derail your goals! John Facemire, Cheyenne Realtor at RE/MAX Capitol Properties, recently shared his experience on understanding real estate fees in the video linked below. To learn more about navigating your real estate transaction fees (whether you’ve been thinking about how to sell my home in Cheyenne or how to buy a home in Cheyenne) John is a professional that you can trust to guide you through the process from beginning to end. After you watch his video, be sure to subscribe to our YouTube channel for more Cheyenne real estate tips, homes for sale listing videos, community happenings and entertainment. You can also give John a call at 307-635-0303.