You may be asking yourself, “how much will it cost to sell my house in Albuquerque, NM?” This is not a simple question and can vary based on a number of items. This article will help guide you through what to expect and how to determine how much it will cost to sell your home. We’ll take a look at some of the most important factors that affect seller costs, including:
- Real estate commissions
- Real estate closing costs
- Home inspections costs
- Home repair costs
It’s important to remember that while the cost of selling a home varies greatly among buyers, you, the buyer, have more control than you realize in determining that cost. We’ll explore this below as we break down some of the individual costs associated with selling your Albuquerque home.
Real estate commissions to sell my house in Albuquerque, NM
Real estate commissions are the largest expense to consider in determining how much it will cost to sell your house in Albuquerque, NM. There is no state or local regulation when it comes to real estate commissions, and each real estate brokerage is free to set their own real estate commission. Most full-service real estate brokerages charge between 5% and 7% of the sale price of your home; however, it’s always a good idea to ask your brokerage what their commission charges are upfront.
You will also pay New Mexico Gross Receipts Tax (NMGRT) on any real estate commission paid. The real estate commission and NMGRT are split between the buyer’s agent and your listing agent. The split is determined by you and your listing agent—in many cases, it’s split evenly.
Many real estate brokerages also charge transaction fees. Ask your real estate agent if there are any additional costs or transaction fees.
Real estate closing costs to sell my house in Albuquerque, NM
Seller closing costs also determine how much it will cost to sell your house in Albuquerque, NM. Closing costs are negotiable when selling a house, and customarily, both the buyer and the seller pay closing costs. The seller generally covers the cost of:
- The appraisal
- Tax service fees
- Flood zone certification
- Closing fees
- Pro-rata data search fees
- Legal document preparation
- Special assessment search
- Seller recording
- Title commitment
- Owners’ title policy insurance
- HOA transfer fees and disclosure certificate fees
These fees varying depending on the transaction and usually add up to approximately 3% to 3.5% of the sales price of your home. It’s a good idea to discuss which fees you’re responsible for paying when the time comes to negotiate an offer.
Home inspections costs to sell my house in Albuquerque, NM
It’s customary for sellers to pay for inspections; however, buyers have the right to choose their own inspectors. Buyers may also request a host of different home inspections. Home inspections are dependent on the home, construction, amenities and location. Unfortunately, it’s impossible to provide an estimate of home inspection costs. Home inspectors charge what the market will bear.
Buyers may also request the seller pay for a one-year home warranty. This is becoming more and more common, to shield buyers against problems with capital systems like the HVAC, electrical, plumbing, roof, etc. It’s generally very affordable and not a significant burden on the cost of selling your Albuquerque home.
Home repair costs to sell my house in Albuquerque, NM
Even despite selling your home, there’s a possibility you’ll need to pay for repairs before any transaction will go through. Buyers often request that the seller make repairs to the home based on the results of various inspections. For example, fixing a section of corroded plumbing found during the home inspection may be one of the contingencies of the buyer. If it costs $200 to fix, that cost falls to the seller.
Buyers have the right to terminate the purchase agreement if the buyer and seller don’t agree on a repair request. The cost of home repairs ranges from very low to very high. Whatever the cost, the most important thing is ensuring the work is done right, to prevent any holdups to the sale and to prevent and pushback from buyers.
Adding up the costs of selling your home
When it comes down to it, in general, home sellers can expect to pay between 8% and 10% or more of the sale price in real estate commissions, transaction fees charged by real estate agents, closing costs, inspections and repairs. While there are some costs you can’t control, many of these expenses are flexible. For example, if you’re handy, you can repair problems before a home inspection to avoid paying for repair requests by the buyer. Likewise, you can barter about closing costs when discussing an offer.
The best thing to do when it comes to estimating and controlling the cost of selling your Albuquerque home is to discuss them with your real estate agent. Myers & Myers Real Estate is knowledgeable in helping you keep your costs as low as possible, while selling your home for the best possible price.
Call us at 505 401-7500 or fill out our contact form to discuss strategies to minimize your costs when selling your home.
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