How to Reduce Closing Costs for Sellers

 

Last month we discussed common fees you can expect at closing time. The bad news – these fees are mostly unavoidable. The good news – there are ways to save, and we’re about to break them down. Trust us, we get that by the time you’re finally ready to sell your house, the last thing you want to do is add more to your plate, but it’s worth it! Closing costs for a $300,000 home can be anywhere from $9,000 to $18,000. That is not chump change! Think about the things you could do with that money . . . Buy a lot more dogs, take those dogs and your family on a vacation, open a beautiful, fancy dog hotel. . . Okay, okay, we love dogs here at The Orns Solution, but really, that money can go a long way. So, let us help you help yourself by following these tips to cut closing costs for sellers.

 

As a reminder, escrow refers to the waiting period just before the property is ready to change hands. During this time, all the money related to the sale of the home is kept in a financial account that’s overseen by a settlement company. This minimizes the risk of fraud by making sure that no one can steal anybody’s money or property. The fee is typically 1% of the home sale price and is usually split 50/50 between the seller and the buyer.

 

As real estate agents, we always have great, trusted escrow recommendations for you, but that doesn’t mean you can’t do your research! A good way to do this is to ask your lender and friends for suggestions. Once you have your recommendations, head to their websites to see if they’re upfront about their fees, view their staff experience, and look into their reputation. While it’s good to save money, it’s better to receive quality service, and best to get both! Savings in this area can sometimes round out to over $1,000, so it’s worth the time and effort to look around.

 

As a reminder, this is a one-time payment that will protect the future owner from defects. This can range in cost from $1,000 to $4,000; however, if you’ve lived in the home you’re selling for less than 10 years, you may be eligible to receive up to a 40% discount on your owner’s title insurance policy. The longer you own your home, the more likely it is that problems will arise. However, if you’re selling your home after only inhabiting it for 3 years, it’s less likely that any major issues have arisen, enabling the rates for the reissue of your title to be much lower as it’s covering a shorter period.

 

Remember, as real estate agents we are experts at this stuff, so don’t ever hesitate to contact us with any questions you might have. And of course, if you need great solutions for your real estate dreams – come to the place with “Solution” built right into the name – The Orns Solution.  For specific information on buying and/or selling contact us for “Your Guide to Buying a Home” and “Your Guide to Selling a Home”.