Here’s a common question that people ask us when they’re selling a home for the first time: “How much money will I walk away with?” A lot of first-time home sellers don’t anticipate the different expenses they’ll face when they finally sell their home, and many feel taken advantage of when they’re not prepared.

At EmpowerHome Team, we’ve had the pleasure of helping thousands of families sell homes, and we believe every seller deserves to know 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 unexpected expenses you’re likely to face!

Unexpected Mortgage Payment

The first thing we want to mention is not necessarily a charge, but something that surprises people. A lot of sellers will look at online statements and see that their 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 call and say, “No I owe $350,000! I’m looking at it right here online!”

You might not remember this, but when you bought your house, you skipped a month in mortgage payments! A lot of people forget, but everyone skips a month in mortgage payments because mortgages are paid in arrears, meaning that you’re paying your mortgage this month for the time you lived in your home in the previous month.

Remaining Balance Owed

Once you know the principal and interest payments you’ll be required to pay, you’ll need to add them to the second 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: you need to pay these expenses for the lien on your property to be released!

Prorated Taxes

The third expense that could catch you off guard are prorated taxes. These can be a little confusing because they are paid at closing.

Here’s an example: Let’s say you’re closing in September, and you have paid 15 days worth of taxes, and the buyer is going to pay the taxes in December for the time that you owned the home from June through September. 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 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 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  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 404-301-3303 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!