Commission to Sales Agents:
Termite Report:
Home Warranty:
Zone Disclosure Report:
Title Insurance:
Reconveyance Fee, Tax Stamps
Escrow Fees:
Administration Fees:
Repairs:
Additional Fees:
Listing agents ask 6% of the sales price as commission, which they share with the Realtor
who represents the buyer. For instance: $100,000 x .06 = $6,000. The listing agent gets
$3,000 and the buyer's agent gets $3,000. However, the listing agent pays for signs,
advertising, flyers, etc.
The seller is usually expected to make sure the house is free from active termite infestation.
An inspection may cost $75. Then, the seller is asked to pay for whatever repairs are necessary.
It is customary for the seller to buy a Home Warranty policy for the buyer, should repairs be
necessary during the first year of new ownership. This gives the buyer peace of mind, should
anything associated with the house suddenly go wrong. These policies usually cost under
$300 for regular coverage.
Because sellers are obligated to disclose any negative facts about the property, zone disclosure
reports tell the buyers about the geography of the property--if the home is in a flood zone or on
a earthquake fault. These reports range from $49-99 and are prepared by a professional company.
This is an insurance policy that protects the deed during a transfer. A good estimate of cost
is about $300.
The seller will need to pay deed to be transferred to the seller and recorded. The reconveyance fee
is around $100--the tax stamp varies.
The seller usually pay for their own costs to the escrow company for its services. This is usually
around $175.
Brokers may charge an administration fee for processing the paperwork required in handling
the sale. This charge is usually around $150.
The buyer may ask for some repairs. The buyer's lender may ask for some repairs in order to
loan money against the property. The buyer repairs are optional. The lender repairs are not, if
you want the buyer to get their loan. If you don't want to pay for lender-required repairs,
you have to find another buyer.
When the buyer makes an offer, they may ask the seller to pay some costs or fees. When
reviewing an offer, make sure your agent explains EVERYTHING to you thoroughly--then,
provides you with an estimate of your "net" profit. Sometimes a buyer will offer a higher price,
but ask the seller to pick-up more cost.
Century 21 Sparow-Shoreline
www.cotterrealestate.com
cotterrealestate@msn.com
(562) 493-6555 x607
