What are the costs incurred when selling a house?


Quick Answer

The costs that homeowners incur when selling a house include sales taxes, administrative fees and closing costs, according to Realtor.com. Additional expenses apply if the homeowner agrees to cover the costs of a home warranty, repairs or other concessions that make it easier for the seller to purchase the house.

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What are the costs incurred when selling a house?
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Full Answer

Homeowners who wish to sell a house but have an outstanding mortgage balance incur several fees to resolve the loan, notes Realtor.com. Outstanding balances from a home loan or home-equity line of credit are deducted from the sale price. Depending on the bank financing the loan, additional fees may be assessed. For example, some lenders charge an administrative payoff fee to facilitate paying off the loan or they charge a prepayment penalty for loans that are paid off prematurely.

Additional administrative fees are required for proper documentation and recording of the sale, notes Realtor.com. These include notary fees to authenticate documents and the identities of the parties involved in the sale. Recording fees are charged to verify that a seller has fully paid all debts owed on the property, and title search fees are required to ensure that a seller has the legal right to sell the house. Home sale transactions that use an escrow service also incur escrow fees, but sellers may be able to split this cost with the buyer.

Homeowners face even more costs if a realtor conducts the transaction, adds Money. This includes the commissions for listing and selling agents. Commission fees are typically around 6 percent of the sale price but varies depending on location.

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