If you are thinking of moving soon, I am sure you are wondering, How much does it cost to sell a home in New Braunfels, TX? Its a good idea to be prepared for all the costs involved before you put that sign up. We’ve prepared a list of the typical costs to sell your home to get you prepared.
Selling my New Braunfels Home: Typical Costs
Your current mortgage payoff: First you will need to figure out the balance due on your existing mortgage. The actual payoff amount is usually different that the balance due on your monthly statement so you will want to be sure and request an actual payoff amount from your mortgage company. Some mortgages do have a prepayment penalty so you will want to verify that will be part of the payoff amount also.
Title Insurance for the Buyer: This is issued by the title company that closes the transaction, but is typically paid for by the seller. Title Insurance protects the buyer in case there is an issue with the home’s ownership history. These rates are set based on the cost of the home. See the following Texas Title Rates table to get an idea what that cost will be. Also, a seperate lender title policy is also required if the buyer is applying for a mortgage to buy the home but that is typically paid by the buyer. You will also want to keep in mind, that the title company will run a Title Search on the home during the sale process. It is possible that a lien on your property could be revealed and you will need to settle it before you are able to sell the home.
Property Taxas- In Texas, property taxes can be a large sum every year for the average homeowner. They are typically due once a year so the title company handling the closing of the home will prorate the buyer and sellers portion based on the time of the sale. In most cases, the deadline for paying property taxes every year is January 31 so this can give you an idea how large the proration will be, If you are selling the home in November, your proration will be much more than if you sell in February.
Don’t Forget Capital Gains- Remember if you stand to realize a large gain on the sell of the home you could be subject to Capital Gains Taxes. If the home is your personal residence you could be eligible for the personal home exclusion of up to $250,000 in gains as a single person or $500,000 for a couple. Contact your tax professional for information on this.
HOA Fees: If your home is part of a neighborhood with a Homeowner’s Association or Property Owner’s Association there could be costs associated it. Typically the yearly membership dues will be prorated for the year by the title company just like the property taxes, but there could also be other fees due based on the situation. For example, some HOA’s charge a transfer fee or some buyers could require a resale certificate and these fees can get expensive.
Escrow or Settlement and other fees- There is a fee to actually close the transaction by the title company, or attorney. Typically this fee is split by the buyer and seller. There are also some other fees such as document recording fees, tax certificate fees, notary and other fees depending on the buyers loan type that could be a part of the transaction.
Survey- Typically, the contract will require that the buyer receive a survey of the property. Sometimes the seller can provide an existing survey if no substantial changes have been made to the property, but depending on the contract negotiations, the seller may need to provide a new survey. The costs for a survey vary based on the property type and size and usually range between $400- $1000.
Real Estate Commissions- Real estate commissions can vary by real estate agent. A lot of agents will charge a percentage of the sale price and in our area the typical commission seems to be about 6% which is split between the buyers agent and sellers agent. Laura Hallam typically charges 5% commission and offers a full service listing package which includes a top of the line marketing plan for every listing. See our sellers services here.
Repairs- The buyer will probably request a home inspection during the buying process which could bring up problems with the home and the seller can be asked to pay for those repairs.
Moving Costs- It may sound funny, but sometimes home sellers forget to prepare for the actual moving costs when they sell their home. Moving is expensive whether you pay for professional movers or box it all up yourself and borrow your buddy’s truck. The costs of boxes, tape, blankets, gas, utility and cable company transfer fees and final move out cleaning costs all add up quickly.
Home Warranty or Residential Service Contract- It has become customary in the Texas real estate market for the seller to pay for a Home Warranty or Residential Service Contract for the first year the buyer is in the home. There are several companies that cover the New Braunfels area and policies can vary from roughly $350- $725 based on the amount of coverage.
Portion of the Buyers Closing Costs- Sometimes in negotiation of the contract, the buyer will ask the seller to pay a portion of the buyer’s closing costs in addition to the seller closing costs. This amount is subject to the buyers loan type but is a common practice in our market.
We hope this list has helped you in budgeting for the costs of the sale of your home. We would be happy to give you more detailed information in regards to your specific property. Fill out this quick form and we will give you a quick no obligation Market Analysis on your property and answer any questions you may have.WHAT IS MY HOME WORTH?