Costs of Selling a Home
Brokers Commission: If you are working with a real estate broker, you are responsible for the payment of the sales commission. The brokers commission is usually negotiated at the time your home is listed with the broker on a case-by-case basis.
Transfer Fees
Whenever property is transferred in New York State, the State Transfer tax is due from the Seller at the time the new deed is recorded.
Satisfaction of Mortgage(s)
Don’t forget that you may have a mortgage or other liens to satisfy from the proceeds of your sale.
Real Estate Taxes/ Adjustments
Although you may have found a buyer for your home, it is still your home until you deliver a deed and move out. You are responsible for the payment of all taxes and utilities until you deliver possession to your buyer.
The above outlines most of the costs of selling a home, except legal fees. This is a sensitive issue that must be discussed between attorney and client before the contract is drawn, not at closing when it is too late.
The Real Estate Contract
The Contract of Sale outlines the terms and conditions by which the sellers have agreed to sell and the buyers have agreed to buy. In particular, it states the basic responsibilities of both the Seller and the Buyer. Once the contract is signed by both parties, they are bound to those terms and conditions. If a contract is not well written, if can lead to problems, delays or even the cancellation of your closing!
The key to the smooth sale of your home is knowing that you have the documents necessary to close the deal before you sign the contract. If a document is not available, or does not exist (as may be the case regarding a Certificate of Occupancy), the contract must be drafted to keep the seller in control by giving you enough time to obtain that document prior to closing. From the Seller’s perspective, if all the paperwork is in place, the contract should be subject only to the buyer obtaining the necessary financing to complete the sale.
Once the mortgage is approved, there should not be any open issues that the seller cannot control. Since the seller is totally prepared, the parties can proceed to a smooth closing!
