Dave was a For Sale by Owner client. In deciding to sell his home himself, he was sure he would be avoiding closing costs. In fact, he was quite sure he would walk away with the full sale price of his property, since he owned it out right with no mortgage. However, prior to closing, he received his closing disclosure from the attorney’s office handling the sale reflecting over $8,000 in closing cost deductions. In shocking disbelief, he calls the attorney’s office asking, “Dude, Where’s my money? I shouldn’t have any closing costs!”
This story is oh-so-common in my world. If you are a seller, I suggest you don’t “count your chickens before they hatch”, per se, as Dave did. You know, where you’ve calculated in your mind how much you will walk away with after closing. Because in most cases, people are quite surprised that it’s not as much as they thought it would be. Let me tell you why.
There are several fees a seller incurs in the sale of their home. In Dave’s case, he only anticipated a realtor commission fee, and since he didn’t have a realtor, he expected not to have any closing costs. However, Dave was vastly mistaken. In addition to realtor commission fees, there are several other items you can expect to be responsible for paying as the seller. Below is a list of common fees a seller will incur in the seller side of the real estate transaction:
Whew, that was a lot, right? Well, now you can see why our good friend Dave was so shocked. But the good thing is that the next time you sell your home— you won’t be! Here at Shepard Law, PLLC, we do our best to make sure our sellers are aware of what’s ahead of them. If you are a seller (especially a FSBO) seeking an attorney to represent you with your real estate transaction, we invite you to contact us to learn how we can assist you!