How much does it really cost to sell your Olympia, Washington home?
Seller’s costs are unique to each seller as there are many things that can affect the final fees to sell a home but in very general and broad terms, sellers in the Olympia area can expect their closings costs to be about eight percent of the final sales price.
Here’s how that is broken down.
The five main costs that sellers can expect are:
- Commission. The commission is paid to the listing firm and then shared with the buyer’s brokerage.
- Real Estate Excise Tax. In the state of Washington, sellers pay a graduated tax when they sell their home. The good news is in January 2020, this tax actually went down for nearly all sellers in Thurston County. Click here for a detailed post on how this graduated sales tax is calculated.
- Title Insurance Policy. Sellers purchase a title insurance policy for the buyer to ensure the property is clear of title defects.
- Escrow. In our area, we do not use attorneys to close transactions but instead, use escrow officers. This escrow fee is usually split 50/50 between buyer and seller. Escrow is a neutral third party who prepares the closing documents, disburses funds, and records the transaction at the county.
- Prorations. Prorated costs usually include real estate property taxes and homeowner association fees, if you pay HOA dues. Sometimes you’ll get a refund on these at closing depending upon if you’ve paid these costs for the year and when you close on your home.
What could increase my costs to sell my home?
Examples of other factors that could increase your costs to sell include the things you may negotiate with a buyer like:
- contributing to their closing costs
- agreeing to repairs
- offering a credit in lieu of repairs
- buying a home warranty
Your escrow officer will be preparing your final settlement statement listing your debits and credits for the transaction. Examples of other debit items may include:
- the mortgage payoff amount
- final city utility bills
- mobile notary fee
When are my closing costs paid?
The good news is these costs are paid from the seller’s proceeds at closing. Sellers do not pay these fees upfront. These fees and other costs such as the payoff of the mortgage, utility charges, miscellaneous recording/county fees, etc. are listed as separate line items on the final settlement statement, which escrow prepares at closing.
More information about selling my Olympia, Washington home
For more information and what to expect when selling your home, click here for my Seller’s Guide. This Guide and these posts are meant to give you a start about the selling process. Your situation is unique. Contact me today for specific guidance for your home sale.
