Let's take out all the guess work - just grab this sheet, fill it out and see what you're going to net with the sale of your home.
In chronological order, here's what you will be paying for throughout the transaction:
Title V Inspection $375 - $750
This is typically due either at the time of purchase and sale, or at closing. The report is good for two years, so you might as well do it before the purchase and sale agreement is due. It can cost between $450 and $1200 depending mostly on how hard it is to find your system. Read our piece on (TITLE 5 INSPECTION FOR SELLERS) for all the details of how this report affects you. Who does a title v inspection? (Cooper Environmental Services)
Attorney Fee $400 - $1000
This can vary greatly, so always do an interview first and ask up front what the cost will be. Your attorney will draft a copy of the purchase and sale agreement which typically happens about five weeks after the offer is accepted. The cost can range from $400 - $1000. They then send it over to the buyer's attorney for edits, everybody signs, and the buyer makes a big deposit into the escrow account that your agent opened up in your name with the initial $1000 offer deposit.
Side note: Escrow Funds
These are all the deposits made by the buyer throughout the transaction. We hold the funds in a secure account until closing.
Smoke Inspection $50 - $100
Your agent will schedule the inspection a couple weeks before closing. The fee is $50 per dwelling, so if there's a house and guest house, it's $100. If we need to install a couple battery powered smoke detectors or carbon monoxide doctors those range from $20 - $30 each. If the detectors are hard wired, we can help arrange for an electrician to add or fix detectors to pass the smoke inspection.
Commission % of sale price
The agency, with your permission, can take the commission out of the escrow funds. If they are not holding enough from the escrow funds on your behalf to cover the commission, the attorneys can pay the agency from a portion of the proceeds at closing to cover it. You do not necessarily have to write a check for the commission at closing as it can be rolled into the settlement statement by the attorney.
Massachusetts Excise Stamps $4.56 per $1,000
Your attorney will take this out of the proceeds of the sale at closing. It's calculated at $4.56 per $1,000.
Won't it be nice to stop writing this check every month? Your attorney will pay the balance of your mortgage out of the buyer's final payment at closing as well. There will be a recording fee of $50 - $150 for your attorney to record the mortgage discharge at the registry.
What do you get?
The balance of funds leftover after all this will be wired into your bank account or a check will be written to you, whichever you prefer.
Are you preparing to sell your home? Contact me for a market analysis of your property and answers to your questions about the Martha's Vineyard real estate market.