How Much Does It Cost to Sell a House In Forth Worth, TX?

If you’re thinking of selling your home in the Dallas / Fort Worth, Texas area, you’ll want to know how much does it cost to sell a house. Many people don’t realize all of the costs involved in selling a house.

Our company is a real estate investment company that purchases homes “as is.” If we buy your house, you won’t have to deal with many of these home selling expenses which will save you thousands and thousands of dollars.

Regardless of the method you choose to sell, it is still best to consider how much does it cost to sell a house so that you can make the best decision for your situation.

Preparing Your House For Sale

When trying to figure out the total cost to sell your house you should start by taking into account what you need to spend to prepare your house for sale. Most buyers want homes that are move-in ready.

Some people have to make repairs, paint, have new carpet and flooring installed, replace appliances and mechanicals, and make other updates and upgrades. This can cost a few hundred to many thousands of dollars. If we buy your house, you won’t have to do anything to fix up your house.

 

Home Inspection Costs

Normally when you sell your house the buyers will have a home inspection performed. The Buyer usually asks sellers to make repairs or replace anything that is found defective or found to be a safety hazard in the home.

This can cost anywhere from a couple hundred dollars to a few thousand dollars. We won’t have an inspection, so you don’t have to worry about home repairs or the home inspection cost.

 

Seller’s Title Fees

A title is a legal document about a home that specifies who owns it and whether or not there are any liens on the property. The buyers want to make sure that no one else has any financial interest or otherwise in the home.

For example, they want to make sure that you don’t owe any contractors money for any work done on the home or owe the government any back taxes.

When you sell your home a title search must be performed to make sure your property shows what’s called “free and clear title.” This ensures that you are selling your home to the buyer without any encumbrances that could affect them financially or non-financially in the future.

For example, title insurance fees for a $200,000 home is somewhere in the $1,300 price range, and for a $500,000 home it is somewhere in the $2,900 price range.

 

Transfer Taxes

A real estate transfer tax is a fee imposed by some states, counties and municipalities for transferring real property. Many states, counties and cities charge transfer taxes to sellers or buyers when a property is sold and purchased.

The state of Texas and the cities of Dallas and Forth Worth do not impose any transfer taxes on sellers or buyers. This is one expense sellers in the Dallas / Forth Worth, TX area don’t have to worry about.

Homeowners Association Closing Fees

If your home is a part of a homeowners association and you pay monthly or annual dues, you may incur a fee from them when you close on your home. The fee is for a letter that states that your dues are currently up to date and paid in full. It’s also for the paperwork involved in gathering the new homeowner’s information and releasing you from your obligations.

If you live in a community or subdivision in which you pay homeowners association dues, you’ll want to inquire what their fees are for selling your house. The fees range from approximately $100 to $300.

Plat of Survey

When selling a house a plat of survey must be ordered. A survey is an official, legal drawing to scale that outlines a home’s property lines, or boundaries, and includes an outline of the house, deck, patio, fence, shed or any other permanent fixture on the property.

It is required so as to ensure that there aren’t any encumbrances on your neighbor’s land or city property. The fee for this is typically around $500.

Realtor Commission

Commission is what is paid to a real estate brokerage firm for the services involved in selling your home. Sellers usually pays the real estate listing commission. It is split between their brokerage firm and the brokerage firm that brings the buyers to the transaction.

This fee is typically a percentage of the sales price of the home. Some real estate brokerages are discount brokerages and charge a smaller percentage than a full-service brokerage.

The commission percentage, depending on which type of brokerage you hire, is anywhere between 3.5% to 6% to sell your home.

Attorney Fees

It is up to you whether or not you decide to use an attorney to represent you in the sale of your home. Real estate agents and brokers cannot perform legal work. An attorney will negotiate all of the contract terms on your behalf and give you legal advice throughout the transaction.

The cost to have an attorney to represent you in the sale of your home is approximately $400 to $600. You won’t need to pay any attorney if you sell your house to us. We agree on a purchase price and a closing date, and then our company pays an attorney to prepare the paperwork necessary to close the transaction.

Home Warranty

Sometimes sellers will offer a home warranty as a marketing tool to help sell their home. Some buyers will ask for a home warranty to be included in the sale of the home to give them protection after the closing.

The cost of a home warranty, depending on the level of coverage, is anywhere between $400- $600 for a year’s worth of coverage.

Some home warranty plans include coverage for the seller while the house is listed for sale and up until the day of closing. You won’t need to worry about this cost if you sell your house with us because we purchase it “as is.”

FHA/VA Loan Costs

If your buyers have a Federal Housing Administration Loan (FHA) or Veteran’s Affairs (VA) Loan insured by the federal government, there may be fees allocated to you as the sellers.

For example, if the buyers are obtaining a VA Loan, the sellers must pay for a pest inspection. On average this will cost approximately $100.

If the buyers are obtaining an FHA loan, the sellers may be asked to pay up to 6% towards the closing costs for the buyers. Of course, this is negotiated between the buyers and the sellers.

Radon Costs

Radon is a colorless, odorless gas that can cause cancer. It is found in the rocks and soil underground. It lingers under some houses and not under others. If buyers have a radon test performed and a radon level of over 4.0 pCi/L is found, they will most likely ask the sellers to have the radon mitigated in the home and have a retest performed showing acceptable levels.

The total cost of radon mitigation and a retest is anywhere from $1,200 to $1,500.

Well and Septic Costs

If a house has well and septic, the buyers will usually want the system inspected. The inspection is typically the buyer’s cost. If something is found wrong with the system, the buyers will most likely ask the sellers to repair it or fix the issue.

It’s difficult to give an estimate for the cost that will be incurred because it depends on the extent of what’s found in the inspection. It can cost hundreds or many thousands of dollars depending on the severity of the issues.

Closing Cost Credit to Buyers

Sometimes buyers negotiate closing cost credit from the sellers. As a seller you should take this into account when figuring your net proceeds. Some sellers will accept a higher sales price in exchange for paying some of the buyer’s closing costs.

Sometimes buyers don’t have enough money on hand to pay all of their down payment or other costs, and their lender agrees to allow for some of the money to come from the sellers at closing.

Lenders will usually accept an agreement where sellers pay up to 3% of the purchase price for the buyer’s closing costs.

Moving Costs

It’s also important to take into consideration the cost of physically moving all of your belongings. There are many scenarios for moving and a wide range of costs involved.

Some sellers pack up and move everything in the house themselves except for their large furniture. In this case you can expect to pay around $1,000 for your move.

Some sellers hire a full-service moving company to do everything: pack everything in the home, put it all on a large moving truck, drive it all to their new home and unpack everything in their new home. This may cost somewhere between $2,000-$4,000.