selling / closing cost question

**ragin_cajuns** · 01-10-2012, 01:33 PM

Hi, new member and first post. My wife and I are selling our house and we spoke to a real estate agent to get the ball rolling.

After he figured out how much to list our house for he calculated what we would have to pay at closing when our house sells based on sale price and what our mortgage payoff is. He said that we would have to pay closing costs on the sale of our house. Now I'm new to home selling but I thought that closing costs were paid by the buyer. This isn't an isntance of us paying the closing costs for the buyer either as I asked him if the buyer had closing costs as well and he said yes.

This is an agent who says he sells your house "free" if you buy your next one through him (he makes his money from the seller of the hosue we buy). Not sure if that makes a difference in this scenario but thought I'd include that.

Can anyone shed any light on this?

thanks,

**Greg** · 01-11-2012, 05:09 AM

Never list with the first agent you talk to or you will always be unsure of the procedure.

Typically, sellers have their own set of closing costs and they vary by location. Here a seller has to pay a 1% transfer tax, .02 state tax and attorney fees plus commission.

An agent who sells your house for free with the hope of making a commission on the property you buy is an agent who is desperate, not successful and does not know how to sell real estate for a living. No one, regardless of their type of business, can work for half a pay check. Anyone who is willing to work for half a paycheck is desperate and not very experienced at selling real estate.

Right now you think you are going to save money but in the long run you will end up losing money on the sale of your house. In a declining market, time is not on your side. Your house is losing value every day it takes to sell it. If this person wastes 6 months or a year trying to sell your house you lose in value what you think you save in commission.

**CC Lifestyle Realty** · 01-11-2012, 07:42 AM

I agree with Greg.

First you have to pay taxes, remaining unpaid property taxes, and recording fees when transfering property from one individual to another. The amount owed depends on your location.

I would interview several agents before selecting one. Ask how and where your home is marketed. Ask agents about the market near your home. You need to know if they really understand your area well.

You want to get the most for you money, and getting something for free usually means you are getting a reduced service.

**VancouverWa** · 01-12-2012, 09:33 AM

Sell your house for free..?
That's a lot of liability to take on for free..
Was he offering anything for a selling commission...?
When your looking to purchase is he looking at the commission he's going to earn or the property your buying..?

I'm really curious to know how this works, could you please add more details.
Tread carefully.