Closing Costs for SELLERS Explained

It's important to know how much you will NET from the sale of your home. In this video, I'll explain the closing costs Sellers pay when selling a home in the San Francisco Bay Area.
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From largest to smallest the closing costs are as follow:
1. Broker Commission
Most real estate brokers charge between 5%-6% to list and market your home. This is split between the Listing Agent and Buyer's agent. Even when using a discount broker, who often produces underwhelming "discount" results, you can expect to pay 3.5%, since the buyer broker fee is typically set at 2.5% as an industry standard.
2. Transfer Tax
Transfer tax is a transaction fee imposed on the transfer of land or real property from one person (or entity) to another. In San Francisco, for most transactions you can expect to pay around .75% of the purchase price.
3. Property improvements
If you're looking to maximize the sales price of your property, it definitely makes sense to improve the home. Buyer's will pay a premium for turn-key properties. Think fresh paint, refinished floors, updating light bulbs and light fixtures, and gardening. The cost of the improvements will depend on the condition of the property. I'd budget around 1%-2% for improvements. As your agent, I could advise on the most cost effective improvements that make a large impact.
4. Staging
Investing in staging will help you sell your home faster and for more money. Staging also allow buyers to see how the layout of the property is best utilized. A furnished home also looks a lot better online and will attract more buyers. Staging can cost $4k-$10k for a 1-2 bed condo or single family home, and can be as high as $30k for a luxury $3M+ home.
5. Property and Pest inspections
It's very important to disclose all material defects of the property. By providing buyers with a property and pest report, they will know what deferred maintenance exists in a home so they can budget for repairs. If the seller would like to address some of the items revealed in the inspections, it could also help the seller achieve a higher sales price. These inspections typically cost between $600 - $1000.
6. For condos: HOA Transfer Fees & Documents
Some condos typically charge a transfer fee and a move-in, move-out fee. It's important to be mindful of these and have your agent include these in your net sheet. These fees are typically less than $1k.
If you'd like to know what your home is worth make sure to schedule a home valuation with me!
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Andres Restrepo | 122° West Real Estate
[e-mail]
www.122westrealestate.com
Compass | San Francisco
DRE 02059106
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#selling #sanfrancisco #closingcosts

[@focusmediasf]

Great content! Do you already have a media team?

[@MostMorium]

❤❤💝💝❤❤

[@Mirnacalifornia]

Hi Andres !
I have passed my real estate test, any recommendations on how to choose the broker? There is a lot and am kinda lost! How do you know which is the best?

[@AndresRestrepoSFRealEstate]

Awesome! Find the company that has the most amount of listings in your market. This will be good because you will have more open house opportunities.