Updated: Aug 17, 2021
So How much does it cost to sell a house here in Indianapolis? Assuming you were going to hire a realtor to do so, these are the typical expenses that will come up.
1) The first thing most sellers want to know is, how much commission do you charge?
Typically in Indianapolis, most agents charge anywhere between 6%-7% to sell your home. Some agents may have different tiers of what they charge depending on the situation. Example would be, maybe you already have a buyer but need assistance with the paperwork, then we typically would not charge the regular amount. You will want to discuss this in further when selecting your agent. Here are some things to keep in mind regarding the commission.
Your agent does not get to keep all of this money.
They will typically split this with the buyers agent.
They also have to pay fees to their broker.
And of course, they still have to pay taxes!
2) Don't forget about property taxes!
Because we like to do things backwards in Indiana, we pay our taxes in arrears. This means that you are paying last years taxes this year. You will want to credit the buyer for the future tax bill at the closing.
For a quick estimate on what you will pay for property taxes at the closing, you can estimate paying another 1% of the sales price. The good news here is, if you have been paying a mortgage, your lender typically is holding back money in escrow to pay your taxes for you. If you close before your lender has paid the taxes, you should receive your money back that's being held in their escrow account within 30 days after closing!
3) Finally, you have to pay general closing costs / title fees!
The title company is the place that will make sure the title is clean and will conduct the closing for both parties. There are fees associated with this and both the buyer and seller will have general closing costs/title fees. This typically can add up to about 1% of the sales price as well.
Here are some other general things to consider before accepting an offer on your home:
If the buyer requests other things on the purchase agreement such as assistance paying their closing costs, or a home warranty paid by the seller, then these would be additional closing costs on top of everything mentioned above.
Your agent should be able to put together a Net Sheet to help you determine about what you would make (estimate) once the sale is final. They should be able to take all things requested in the purchase agreement, add up the taxes and title fees and deduct it from your loan balance to help determine what your net value would be after the sale is final.
At the end of the day, how much does it cost to sell a house in Indianapolis. It usually can range between 8%-9% of the sales price. A quick example would be, your home sells for $100,000. If you owe $50,000 on the home and you estimate 9% to sell your home. It would cost about $9,000 in fees. Take $100,000 - $50,000 - $9,000. In this example your estimated net value would be about $41,000 after the closing. This would give you a general estimate of what your net value would be.
So if you would like to find out how much your home is worth because you’re thinking about selling in the next 6 months or so, click this link and fill out the form as I would be happy to do a free home valuation analysis for you. This would give you more of a detailed idea as to what you could actually make on selling your home. This is a big factor in determining if now is a good time to sell, or if you should wait a year or two.
What questions do you have about this process, feel free to shoot me a message @ Paul@SoldByPaulLinn.com