What does it cost to sell a home?
Common costs in selling a home include:
Real Estate Commission: The commission is
not fixed by law and is generally negotiated
between the seller and the seller's agent.
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Closing Expenses and Costs: Costs vary depending
on the sales contract and may include items
such as transfer taxes, loan payoffs, termite
inspection, any judgments and liens, recording
fees, tax pro-rations, notary fees and any
other negotiated items.
What is 'escrow'?
Escrow is a process for handling the details
of the transaction from the time the purchase
agreement is accepted until title is transferred
to the buyer. An escrow is a temporary deposit
of assets, such as funds and documents, with
a neutral third party that makes sure that the
terms of the purchase agreement are carried out.
The money is released when the conditions of
the contract between the two parties have been
met.
How long is an escrow?
The length of an escrow is determined by the
terms of the purchase agreement and can range
from a few days to several months. An escrow
often takes an average time of 25-30 days.
How are real estate agents compensated?
A commission amount is negotiated between the
Seller and the Seller's agent, and that amount
is usually divided among the Seller's agent's
Brokerage, the Seller's agent, the Buyer's agent's
Brokerage, the Buyer's agent and any referring
agents. Real Estate commissions are traditionally
paid at the close of escrow from the Seller's
proceeds. |