Selling in Colorado & Wyoming
HOW MUCH WILL IT COST?
You mean I will have costs in order to SELL my house? Well, the simple answer is yes. But these costs are all very necessary in completing the agreed upon transaction with your Buyer(s) and ultimately, to protect you. Several examples of Seller's expenses include:
Title insurance policy- This is an insurance policy that will protect you, as the Seller, by insuring that your property records have been properly researched and your home is, in fact, yours to sell. Also, in researching the property records, the title insurance company will insure that there are no liens placed on record that you may or may not know about.
Payoff of your existing mortgage(s) including prepayment penalties, if any- If you have a mortgage loan(s) on the property you are selling, then that financial institution is going to require the loan is paid in full before any of the proceeds make their way to you.
Broker’s commissions - The commissions paid to the real estate brokers, that both represent you as the Listing Broker and your Buyers as the Selling Broker, are customarily paid by the Seller in both Colorado & Wyoming. These amounts are negotiated between you and the Listing Broker at the time of signing your Listing Agreement.
Unpaid property taxes for the current year- Both Colorado and Wyoming pay their property taxes in arrears. This means that this year's taxes will be paid next year. When selling your property, the property taxes will be figured for the Seller to include every day in the year up to the closing date. That amount is typically collected from the Seller's proceeds and transferred to the Buyers at Closing. After this transfer of funds, the Buyer will pay the full year's taxes for this year, next year.
Repairs which you have agreed to do; other miscellaneous items which you have accepted to pay in the Contract to Buy & Sell- If it is agreed that you, as the Seller, are to pay for any repairs or any miscellaneous items, then these expenses can usually be paid out of the proceeds of the sale at Closing. Any and all repairs to a property will have to be paid prior to or at Closing to prevent any mechanic's liens from popping up on the title for the new Buyers to have to deal with.
Title insurance policy- This is an insurance policy that will protect you, as the Seller, by insuring that your property records have been properly researched and your home is, in fact, yours to sell. Also, in researching the property records, the title insurance company will insure that there are no liens placed on record that you may or may not know about.
Payoff of your existing mortgage(s) including prepayment penalties, if any- If you have a mortgage loan(s) on the property you are selling, then that financial institution is going to require the loan is paid in full before any of the proceeds make their way to you.
Broker’s commissions - The commissions paid to the real estate brokers, that both represent you as the Listing Broker and your Buyers as the Selling Broker, are customarily paid by the Seller in both Colorado & Wyoming. These amounts are negotiated between you and the Listing Broker at the time of signing your Listing Agreement.
Unpaid property taxes for the current year- Both Colorado and Wyoming pay their property taxes in arrears. This means that this year's taxes will be paid next year. When selling your property, the property taxes will be figured for the Seller to include every day in the year up to the closing date. That amount is typically collected from the Seller's proceeds and transferred to the Buyers at Closing. After this transfer of funds, the Buyer will pay the full year's taxes for this year, next year.
Repairs which you have agreed to do; other miscellaneous items which you have accepted to pay in the Contract to Buy & Sell- If it is agreed that you, as the Seller, are to pay for any repairs or any miscellaneous items, then these expenses can usually be paid out of the proceeds of the sale at Closing. Any and all repairs to a property will have to be paid prior to or at Closing to prevent any mechanic's liens from popping up on the title for the new Buyers to have to deal with.