Home Selling Expenses

There are a number of expenses that can be involved in selling a home.  Here is an overview of the potential costs.


Financial-tip-money-jar.jpg

Tax Proration:

  • The tax year runs from 07/01 to 06/30 but is certified in October and paid by lenders escrow accounts at the end of October or early November. Therefore, taxes are a charge to Sellers from 7/01 up until about the end of October (Seller must pay for the time they live in the house before taxes are paid that year), then a charge to Buyers after that (Buyer must repay taxes already paid by Seller). 

Credits

  • Heating Oil – Depends on how much oil is in tank and current rate
  • Real Estate Withholding: A pre-payment of income tax when a non-resident seller sells a property. It is not an additional tax. Any out of state or foreign seller who transfers a property located in Oregon may be subject to taxes being withheld at the time of closing. Check with your CPA about the possible implications if you are an out of state or foreign seller.

After closing:

  • Capital Gain Taxes: Check with your CPA for the tax implications of selling your property. 

Before closing (paid OUT OF POCKET):

  • Repairs, cleaning, staging, and home warranties to get home ready for market. At closing (taken from proceeds of sale, NOT OUT OF POCKET.
  • Repairs negotiated during sale: Depends on condition of home discovered during home inspection, but generally between $1000 on the low end and $10,000 on the high end. Most buyers will request at least $1000 in the form of repairs or a credit during the negotiation period.

Loan Payoffs:

  •  Depends on how much you owe on the house
  • Prepayment Penalty Fees: If your loan doesn’t allow pre-payment
  • Real Estate Sales Commission: 6% of sale price

Closing Costs:

  • Recording Fees – $20
  • Reconveyance Fees - $120
  • Title Insurance – $800 - $1200
  •  Escrow Fee (one half) - $500-$900