If there’s one question we get asked the most by first-time home sellers, it’s this: “How much money will I actually walk away with after I sell my home?” Of course, each family’s answer will be different depending on their home and the current market, but there are a few things we think everyone should be looking out for. Particularly, there are some expenses home sellers face which catch them off-guard.

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 readily-available information for first-time home buyers, but virtually none for home sellers who are left in the dark about the transaction. 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 with that and say, “No I owe $350,000! I can see it right here online!”

Here’s what’s really going on: you may not remember, but when you bought your house, you skipped a month of mortgage payments! Everyone actually 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 mortgage payments.

Remaining Balance Owed

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

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

Prorated Taxes

Prorated taxes are the third expense that catch first-time home sellers off guard. They can be a little confusing since they’re 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 January 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!

Right now, 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 303-529-0697 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!