Carlsbad Home Sellers – Don’t Forget About Your Closing Costs!

Home Seller Tips and Advice

You are selling your home here in Carlsbad, or perhaps one nearby, and of course one of the really important things is how much you are able to sell it for. It’s probably the number 1 question sellers want answered.

It’s a big deal because you likely are buying something else. And who doesn’t like to make money on a big investment such as a home purchase?! That’s certainly more likely in recent years given where prices have gone, and depending on when you bought your home.

But before you start counting those dollars, don’t forget about the closing costs. Remember as a buyer when you bought your home and had closing costs? (read this FAQ post on What are Closing Costs?).

While they differ, there are closing costs for sellers, too.

I will review this with you if we work together, but any respectable listing agent should provide you with some projected costs when you are getting started so you have an idea of the net proceeds, and the fees you likely will have to pay.

Keep in mind these real estate transaction fees can vary depending on where you are buying the property, perhaps the type of property (condo vs single family detached home), if there is an HOA, and other factors.

This list does not include every fee you might need to pay, and some items are negotiable in the contract between the buyer and seller, like the home warranty amount.

Unless you own your home outright, it goes without saying the bulk of the money coming out of the sale price is the loan payoff. You can estimate this using your most recent mortgage statement which should show the loan balance, but the final payoff amount (principal, interest, other fees charged by the lender such as a reconveyance fee) will depend on the actual closing date. For many sellers the loan payoff is likely to be hundreds of thousands of dollars.

Here’s a list of other possible fees you can anticipate, depending on the property and what’s been negotiated in your contract:

Property taxes that are due and haven’t been paid (or a credit from the buyer for property taxes you already paid beyond your closing date)

Commission (always negotiable, split between Listing Side and Selling Side)

Escrow fee (seller portion)

Owner’s Title Insurance Policy (typically paid by seller per the contract)

Transfer Tax for San Diego County ($1.10 per $1000 of purchase price)

Natural Hazard Disclosure Report (NHD) Fee

Home Warranty (buyers usually ask seller to pay for 1 year)

HOA Document Preparation Fee (if there is an HOA)

HOA Transfer Fee

Courier Fee (if applicable)

Notary Fee

Document Recording fees (e.g., payoff of the loan)

While you will have an estimate upfront (or you should!), the escrow company will provide an estimate of the fees and net proceeds before closing, and then a final settlement statement.

For more information on how to sell a home, check out my video series on my YouTube Channel, Home Selling Tips and Advice (21 short 1 – 2 minute videos). These are tips and advice on things sellers should know.

If I can assist you in any way with your home sale, please get in touch with me at (760) 840-1360 so we can discuss your needs, time frame, and a market and equity analysis, and create a strategy to sell your Carlsbad home, or one nearby, for top dollar and as quickly as possible in 2020.