Recent Seller Question: “What expenses should I expect when selling my Indiana home and how much money will I actually walk away with when it’s all said and done?”
Great Question! Isn’t this what everyone really wants to know?
There are several different expenses involved when selling a house in Indianapolis or throughout Indiana. Some are part of the actual transaction while others are miscellaneous costs which may be overlooked, like repairs needed to get the home ready or movers and storage. A seller may also agree to make some repairs to the property as a result of the buyer’s inspection. Depending on the condition of the property and the extent of the repairs, this could be negligible or extensive, so budget accordingly.
Here are fees which are often part of the actual sales transaction and are subtracted from the seller’s proceeds at closing:
Brokerage Listing Fees: This is usually a % of the sale price. When comparing pricing, be sure to ask if there are additional fees. Some companies advertise a low % and often have other hidden fees. Also find out what the broker is going to do to earn their fee. Not all brokers are the same! It’s also important to understand that this fee is divided between the listing broker and the agent who brings the buyer.
Title Fees: It’s customary in Indiana for the seller to pay for an Owner’s Title Insurance policy. Why? Because you are guaranteeing the buyer that you have clear title to the property. The actual Title Insurance premium is based on the price of the property, plus there are other set fees for things like the search and exam of public records to determine whether or not there are any liens against the property.
Pro-rated Property Taxes: Indiana Property Taxes are collected 1 year in arrears (12 months behind), so when you sell, the buyer normally requests that the taxes be brought current through the date of closing. Since has not yet been issued, that money can’t be paid to the county, yet. So, the amount collected is credited to the buyer who will assume payment for all future tax bills as they arrive.
Home Warranty: It may be negotiated into the offer or after inspection that the seller will provide a 1 year home warranty at a cost of approximately $500.
Miscellaneous: Document Recording Fees, Overnight Delivery Fees, State Fees, etc.
At the initial seller consultation, and again with each offer/counter offer, the Hoagland Group prepares and reviews a custom Estimated Net Proceeds document with our sellers. You’ll always know your bottom line!