Wednesday, February 19, 2020 / by Marketing Dude
Selling your house is exciting, but it can also be stressful. While you might be concerned about packing, moving, and preparing yourself to live in a new place, your first concern should be how much your sale will cost you. Why? Because listing your house without knowing what it’s going to cost you makes negotiations impossible. Being aware of all costs when selling your home in Minnesota will ensure that you make the best decision when the offers start coming in. After all, the most important number is not what your house sells for, but what you walk away with.
When you sell your Minnesota property, it’s important to have an accurate net sheet before you start. The net sheet will show you your bottom-line, walk away figure after closing costs. Knowing exactly what you can expect will avoid any unpleasant surprises. Many sellers list their properties without any idea of typical closing costs, making it almost impossible to determine what offers you should accept. Your agent should prepare your net sheet for you before you put your house on the market, giving you a concrete idea of how much your house is worth.
Knowing your total closing costs as a seller will guide many of your decisions throughout the home selling process. When you focus on your net profit, you’ll be able to navigate a variety of scenarios that may come your way. Whether you have trouble getting showings and need to make a price adjustment or simply need to choose between competing offers, knowing your closing costs will help you make the best choices.
These are some estimates of typical closing costs in Minnesota. Knowing these numbers will give you a better sense of how much you’ll come away with once you sell your home.
Mortgage Payoff—This is the amount you still owe to your lender that will be deducted from the sale price.
Real Estate Transfer Fee—This cost gives a portion of the proceeds of the sale to the county, and will vary based on location. Minnesota’s transfer tax rate is $3.30 per $1,000 of the purchase price. If you sell your house for $100,000, you’ll pay $330 to the county.
Title Fees—This ensures that the transfer of the title from your name to the buyer’s name is done in the proper manner. These fees vary depending on the purchase price and county.
Inspection Fees—If you have a house that has its own septic system and well, there will be an inspection fee of these items to make sure they’re in proper working order. This will usually cost between $300 and $600, depending on the size of the house.
Realtor’s Commission—Commissions should be around 5-6% of your sale price, depending on the agent. While a lot of people feel like the commission is an unavoidable burden of doing business, remember that a good agent can get you a sale price of 5-6% higher than your original asking price. In that case, there’s really no cost.
Attorney’s Fees—If you choose to hire an attorney to help you with the selling process, there will be fees depending on the number of services provided.
Real Estate Tax Prorations—As the seller, you’ll need to credit the buyer for their unpaid share of taxes. Since property taxes are always being paid a year behind, plan on crediting the buyer with a year’s worth of real estate taxes. While this isn’t really a cost—it’s a bill that you owe since you occupied the property during the time the bill was due—it will deduct from your bottom line.
These are the main costs associated with selling your home in Minnesota. You’ll definitely want to know the total costs before you get an offer for your property, and make sure to contact me if you’d like an even more precise closing cost estimate on your home. I’m always happy to help!