We pay the closing costs involved with the sale and don’t charge any real estate commissions on the sale.We all have dreams and goals that require money. If you’re looking to sell your house, and your financial situation requires you to pay as little out of pocket as possible, contact us to get a cash offer for your home. Is it possible to sell a house without closing costs?Ĭlosing costs will vary depending on the terms of the contract, what debts the seller has secured by the property, your mortgage balance, whether you’re selling to a cash buyer or using a traditional real estate agent, and what title company is used to close the sale.
The seller walks away with the difference in cash – which in this scenario amounts to over $78,000. $121,110.87 of that is paid out by the title company to satisfy the liens and closing costs. The buyer is paying $200,000 for the home. The seller owes $106,000 on the mortgage, so the total amount they need at the closing table to sell the home is $121,110.87. Instead, they come out of the proceeds of the sale. But none of these costs need are paid upfront by the seller. The total amount for the closing costs without taking the mortgage into account is about $15,110.87.
The payoff of loans in seller’s name is $106,000. Recording charges to clear all documents of record against seller = $50. Seller is covering the HOA transfer fee = $0. There are no past-due property taxes = $0. Pro-rated property taxes yet to be paid for the current calendar year at a 3% tax rate = $1,327.87. HOA dues are current = CREDIT to the Seller for $376. There are no liens or judgements against the seller = $0. Real estate agent commissions = 6% or $12,000. Paying for the title insurance premium = $1,359.00. The home is sold as-is and doesn’t incur any repair expenses = $0. HOA dues are $500 per year, and there is a $200 transfer fee. The home’s assessed value for property taxes is $180,000. An Example ScenarioĪ seller owns a home that they are selling for $200,000 on-market to someone obtaining a mortgage on March 31 of the current calendar year. In both cases, most of these costs can be paid out of the closing proceeds (except for repairs or HOA transfer fees, if applicable to the sale).Īs long as you have the equity in your home to sell it and satisfy these costs at the closing table, you shouldn’t need to pay any out of pocket cash to sell your home – no matter which sale method you choose. However, the below items are not closing costs, and are rather unpaid bills secured by the home that the seller will still be responsible for: If you’re selling your home to a cash buyer like AMI, they will typically cover all of your closing costs. The payoff of loans in seller’s name (or existing loan balance being assumed by buyer), including interest accrued, re-conveyance fees, and pre-payment penalties. Recording charges to clear all documents of record against seller. HOA Resale Disclosure fees and HOA transfer fee (if applicable). Any past due property taxes (if applicable). Pro-rated property taxes if they have yet to be paid for the current calendar year. 
Home warranty (if applicable, but it’s typical for a Seller to pay toward one in Texas). In a typical on-market sale, a seller will usually incur the following typical closing costs for a seller: However, sellers statistically also fetch a higher price on the open market for a house than they will when selling the home off-market when they use a good agent. That said, sellers will typically incur closing costs in the sale – especially if the home is sold on the market. The buyer pays for the home’s inspection and appraisal, which are the most two most common out of pocket fees that have to be paid before closing on the sale of the home. When you sell a home, most of the costs associated with the sale of the house on the front end fall on the buyer, especially if you negotiate the deal smartly. Homeowners looking to sell often wonder if they need money to sell their homes.
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