Virginia might be a first time Seller,....a Personal Representative for an estate or a For Sale By Owner...someone not familiar with the costs the Seller incurs in selling a house. (One first time Seller recently asked us if Buyers would be their closing costs...yicks !)
Some people believe without the benefit of experience...you take what the Buyers paid, subtract the commission and poof...Profit !
Please NOTE...these are charges for the state of Wisconsin and other states may do things differently.
For the period of time that you , Mr./Mrs./Ms owned you of course...pay the utilities and other services..that will include those pro rated for which you have not yet been billed...water, sewer, gas, electric, cable, internet, etc. The charges for utilities will be researched by the title company and subtracted from your proceeds. It is your responsibility to let service providers know that you wish to discontinue service and the proper date. In the case of gas and electric charges, the billing is changed to the new owner on the day OF closing regardless of whatever date you moved from the property.
It will be your responsibility to pay the property taxes thru the day before closing. This amount will be deducted from your proceeds...you do not write a check. It will also be a credit to the buyer. If your taxes are escrowed with your mortgage payment, the escrow will be returned to you within 45 days of closing.
You are responsible for title insurance. Ask your Realtor to estimate this charge
for you and if you have it, provide the policy from when you purchased or refinanced the house and the title charge will be reduced.
The title company may have additional miscellaneous charges for sending out city letters and researching other possible liens...your Realtor can get an estimate of these charges for you before closing.
Wisconsin has what amounts to a "sales tax" when you sell a house and is called a transfer tax....the rate for this is presently $3/thousand, this is a fee paid by the Seller.
The real estate commission is also deducted at whatever percentage you agreed when you signed the listing.
If you have a mortgage balance, additional lien ...whether you call it a home equity loan, second mortgage etc.....also has to be paid in full before you can close. The title company will get these payoffs from your lender to insure that the new owners will receive the property free and clear.
If you are just considering listing...ask the Realtor you choose for a "Net Sheet"...that will detail the estimated charges and show you your bottom line profit. Remember, all charges run to the day of closing and if the closing date changes...the charges will change as well.
Yes Virginia....it costs money to make money in selling your home...and if you or anyone you know is ready to sell their home in southeastern Wisconsin...Call the Hansons for the best of the bottom line profit in your home sale.