Selling a home comes with costs the owner is responsible for, such as pre-listing home improvements, agent commissions, and expensive closing costs.
During this process, every homeowner hopes to see a worthwhile return on investment. However, there are many expenses for which they’ll need to foot the bill before seeing their reward.
Learn just how much the Beehive State’s sellers are paying in these costs below.
What Are Closing Costs?
When you sell your home through traditional methods, it requires a team of various professionals, such as a real estate agent, home inspector, appraiser, and more. Their time is valuable and costs money, which is where these costs come into play. Your closing cost dollars go to the people who can cross all the “t’s” and dot each and every “i” to ensure a smooth and legal closing.
How Much Are Utah’s Closing Costs?
Our costs can range from 1-3% of the home’s sale price. Keep in mind that these costs are an additional expense after traditional listing method fees, such as agent commissions, marketing and listing fees, cleaning, repairs, and staging. After all of these expenses are combined, and you’ve paid off your loan, your profits aren’t nearly as much as you had previously expected.
What Do These Costs Include?
Many of these costs include home appraisal ($450-$650), home inspection ($300-$500), credit report ($20-$50), loan fees (.5%-1.5% of the sales price), title insurance ($1,000), mortgage pay off penalties (varies), home warranty ($300-$400), and more. It’s important to read the fine print to know what exactly your costs include (and don’t include)!
Who Pays These Costs?
Every part of a real estate transaction is negotiable. However, generally speaking, the costs are often shared by the seller and buyer.
- Common Seller Closing Costs — The seller is typically responsible for paying for the home warranty, title insurance, household repair costs, transfer taxes and fees, mortgage payoff penalty, and, if applicable, attorney fees.
- Common Buyer Closing Costs — The majority of the buyer’s costs are related to their loan, which may include a credit report, loan fees, title search, title insurance, inspection, appraisal, and survey fees, and, if applicable, attorney fees.
Should the Seller Pay the Buyer’s Closing Costs?
Sellers don’t need to pay the buyer’s costs. However, some sellers use that as an incentive to buy your home if it’s a buyer’s market, and there’s a surplus of inventory. It might be worth your while to pay the buyer’s costs to lock down a buyer. Buyers may prioritize your house over another if you offer to cover their costs.
Contact Utah Sell Now
Avoid the hefty price tag and headache of selling your home through traditional methods. Instead, sell your house to Utah Sell Now! We’re Salt Lake City’s premier professional home buyer and are ready to offer you a fair, all-cash offer if you live in this city or around it.
Skip the hassles of making repairs, cleaning your house, and otherwise preparing for listing it on the market. There are no commissions, zero hidden fees, and we pay 100% of the closing costs when you sell your home to us. Contact us and get your all-cash offer today.