Offers are being presented to home sellers every day and every day, sellers will burn $5,000 to $10,000 by not knowing four facts about negotiating the sale. Essential Real Estate clients know what you need to know.
An owner of a $700,000 property will pay costs totaling $35,000 to $70,000 in Wisconsin transfer taxes, title insurance, property taxes, buyer broker fees, deed preparation, filing fees, buyer credits, attorney fees, property tax, and broker fees.
To help you save when selling, consider these four cost-cutting strategies for a $700,000 sale. (Adjust for other prices.)
1) Decouple the Commission. Real estate commissions are negotiable. But you have to know when to negotiate. Instead of agreeing to pay our Firm a set fee that we then use to pay the buyer’s Firm, you pay only our fee. After you review all offers and terms, you can decide if you want to pay any fee to a buyer’s broker. Result: Typical savings from decoupling commissions range from $3,500 to $14,000.
2)Title Insurance is negotiable. Wisconsin sellers pay title insurance because the agreement assigns the cost to them. In some markets, it’s a buyer’s expense or negotiable. Result: Typical savings from shifting this cost: $2,700 to $7,000.
3) Have the Buyer Pay some or all of the Property Taxes. Wisconsin purchase agreements require sellers to pay estimated property taxes for the period they own the house during the sale year. That’s normal, but not required. Buyers can pay the property taxes for the entire year. Result: If closing on June 30th, typical savings: $2,000.
4) Hold off on promising to pay toward buyer brokerage fees. The best time to decide whether you pay some or all of the buyer’s broker fee is after you review all the offers and terms. As a seller, your willingness to pay depends on how attractive the offers are. Consider buyer broker fees only as a cost you pay to secure a desirable offer. If you receive multiple strong offers, don’t overpay for buyer’s broker fees. Result: Waiting to commit could save you $7,000 to $10,000.
Essential Real Estate clients automatically benefit because we decouple the commission without being asked. To take advantage of all of the advantages available to you, it’s necessary to have the options provided by competition. When buyers compete to own your house, you win. How much you win is dependent on what you know.