WHAT COSTS ARE RELATED TO THE SALE:
Mortgage Pay Off: Before the closing, you will sign a release for the Title Company or Attorney to get the amount that will be owed at the day of closing. This will allow the Closing Company to prepare the closing documents and they will issue a check out of your proceeds at the closing to pay off your outstanding mortgage.
Lines of credit or Equity lines: As with the mortgage pay off, you will have to authorize the closing company to get this information. If there is any amounts owed, they also will be paid off and any lines of credit closed.
Prepayment Penalty: Often, sellers think that all that is owed is the amount showing on their last statement. This is not always true. A prepayment penalty could be in your mortgage. You may also owe interest depending on the day of the month that you close.
Unpaid Taxes/Liens: This is why title work is important prior to closing to see if there are any liens or unpaid taxes on the title. These items will also have to be paid the day of closing. The closing company cuts these checks out of your proceeds and pays them on your behalf. Judgments and child support if shown in the title search may also need to be paid.
Special Assessments: Special assessments are things like water, sewer, road or other local government improvements that were assessed to the property. In most cases they must be paid off, in others, they can be assumed by the buyer. If they are to be paid off, again the closing company will pay these out of your proceeds.
Commission to Agents: Commissions are absolutely negotiable but our office knows that our charge is most likely less than many other brokerages. At the present time, when you list your home, your YRL agent will discuss how our commission typically works and has worked in Indiana for about 60 years. However, very recently the Department of Justice has pursued lawsuits on brokerages regarding the payment of buyer agents included in the total commission and offered by the listing brokerage to the brokerage/agent that brings the buyer and represents the buyer. A seller today may actually have presented to them as a further condition or in an addendum to the purchase agreement a desire by the buyers brokerage to change the commission initially offered by YRL in the multiple listing service to the buyer agent OR the buyer may have agreed to pay the buyer agent and will ask that the commission being offered by your listing contract to the buyer agent be taken off the sales price. Just be aware that the commission as of 2023-2024 in our typical listing agreement says we charge X dollars and will represent the seller in an Exclusive Right to Sell Listing Contract and offer X percentage to the buyers agent. The YRL agent will explain this to you in depth.
HOA Fees: If there is an HOA then your seller dues will probably be pro-rated at the closing (done and shown on the closing statement) but if there is a fee for the HOA to transfer the ownership info required by the HOA there may be a fee usually $200-300 to do this for the closing. Usually the closing document will show this fee as paid by seller upfront if that is required and reimburse 1/2 of the fee to the seller from buyer.
