If you’re thinking about selling a home, you may be primarily concerned with exactly how much you will profit from that sale. After all, you’re likely to need those funds to purchase your next home. Some expenses are fixed whereas others are dependent upon the sale price. Here are typical home seller expenses in Massachusetts that you can use to estimate your sale profit.
Real estate agents will charge a brokerage fee for their services. The amount is normally a percentage of the sale price, less any seller concessions. Anti-trust laws prevent anyone from discussing “typical fees,” but you can get a sense of what the percentage range is by contacting a few local real estate agencies.
The home selling process involves some steps that you may want an attorney to assist with. For instance, there is a Purchase & Sales Contract to negotiate with the buyer. A buyer’s attorney will often include an addendum to better protect their client’s interests. You may need assistance interpreting that legal jargon and advice on mitigating your own risks as a seller. Seller attorneys can also draft the deed required for closing. Lastly, your attorney can assist with closing coordination and may be given a power of attorney to attend the closing on your behalf.
State law requires that all properties be inspected by the local fire department prior to closing. Smoke and carbon monoxide detectors are mandatory in all properties. However, the types of detectors and their placement can vary based on the age of the building. We provide an overview of Massachusetts smoke detector law and details on changes that took effect at the end of 2016 in our blog. Fire departments set their own fees for this inspection. If your property is not in compliance, you may need to purchase new hardware as well.
In Massachusetts, sellers are responsible for paying state transfer taxes. The tax is $4.56 per thousand dollars of the selling price. It is payable at closing when the sale is recorded into public record.
Other Typical Home Seller Expenses in Massachusetts
In addition to the above typical home seller expenses in Massachusetts, there are other minor fees that you may incur while selling. These include recording fees, courier fees, and and mortgage payoff handling. Your agent and attorney can provide a rough estimate of these expenses.
For legal assistance with selling your home in Massachusetts, give us a call!