Having helped so many families sell their homes over the years, there’s one question people always want to know the answer to: “How much money will I actually walk away with at the end?” While everyone’s situation is a bit different, there are a few expenses you should look out for which you may not expect.

A lot of first-time home sellers feel taken advantage of when they go in unprepared, so it’s important to know exactly what lies ahead. The sad truth is that there is a lot of information for first-time home buyers, but virtually none for home sellers. So today, we’re going to tell you exactly what to expect at the end of your home’s sale, and explain the three surprising expenses you’re likely to face!

Unexpected Mortgage Payment

This first expense is technically not a charge, but it surprises so many first-time home sellers. You may look at online statements and see that your principal balance is a number like $350,000, but when the title company calls for your payoff, they say you owe $352,000! Many homeowners will argue and say, “No I owe $350,000! I’m looking at it right here online!”

Here’s what’s going on: you actually skipped a month in mortgage payments when you bought your house! Not a lot of people remember, but everyone skips a month in mortgage payments because mortgages are an expense that’s typically paid in arrears, meaning that you’re paying your mortgage this month for the time you lived in your home in the previous month. So when it comes time to sell, you’ll need to pay this missing month of payments.

Remaining Balance Owed

Once you know the required principal and interest payments you need to take care of, you’ll need to add them to the next unexpected expense you may encounter: the remaining balance you owe on the mortgage. These combined expenses will be on the settlement statement when you go to close.

Remember: for the lien on your property to be released, you will absolutely need to pay these expenses!

Prorated Taxes

Prorated taxes are the third expense that could catch you off guard. They can be a little confusing, especially since they’re paid at closing.

Here’s an example: Let’s say you’re closing in October, and you have paid 15 days worth of taxes, and the buyer is going to pay the taxes in January for the time that you owned the home from July through October. This means you’re going to owe the buyer that money because they are paying it on your behalf! You’re going to want to be prepared to pay prorated taxes!

You might be asking, “Haven’t I already paid the taxes in my mortgage payment?” And the answer actually is “Yes!” Even though you’re paying it on your settlement statement, you’re actually going to get a check back from your mortgage company—typically 30-60 days after closing—for the additional money that is being held in your escrow account.

More Unexpected Charges

If you want to know the rest of the charges that will accumulate when you sell your home, register for our FREE Home Seller Workshop! This FREE webinar will tell you EVERYTHING you need to know about selling your home—including helpful and PROVEN tips on how to sell FASTER and for MORE!

The Home Seller Workshop will cover:

  • Professional Staging Tips
  • How to ATTRACT the Right Buyers to Your Home
  • How the Selling Process Works From Start to Finish
  • And So Much More!

If you don’t want to be caught off guard by surprise expenses, then don’t miss out on this incredible opportunity to learn the ins-and-outs of the process! Become the confident seller you want to be, and learn how you can get the most money possible for your home! This webinar will be hosted every 4th Tuesday, so it’s never too late to sign up! You can reserve your spot here: EmpowerHomeworkshop.com

At EmpowerHome Team, we recognize that every house is different. So if you’re thinking about selling, you’ll want advice that’s specifically tailored to your home. Want to know who your ideal buyers are? Or how to better prepare your home for the market? Call 980-294-4523 for a FREE Home Assessment. Our Team will visit your home and evaluate how best to get it sold FAST and for the MOST MONEY possible in the current market!