Common home seller complaint: Commission, fees too high
year and no infestation was found. Other potential buyers had an inspection, and while that inspection had come out fine, I couldn’t get a copy of the report.
With this fee and other costs (for the lawyer, etc.) I wound up with much less than I need to live, including purchasing health insurance, which I can’t really afford. (I have a back fracture and a pinched nerve and lots of pain.)
If you have any information regarding termite inspection requirements, I would appreciate it. I’m so sick of being a home seller! much from the sale as they expected. It was only during the real estate boom years that sellers were only too happy to pay closing costs when they were making so much money on the sale of their homes.
One of the most frequented pages on Ilyce’s website (ThinkGlink.com) is the one that lists seller closing costs. It is quite expensive to buy and sell real estate. In some parts of the country, municipalities have additional transfer fees and mortgage recording taxes that can truly increase the cost of either selling or buying a home.
Of all of the costs of sale you listed, the largest was the real estate commission, which probably came in at around 6 percent. While expensive, that was very necessary.
Your real estate agent did what he was supposed to do. He found a buyer for your home. While it is quite common to see a commission of 6 percent, some sellers find agents willing to handle a listing for 5 percent. At the same time, some real estate companies are shifting the burden and cost of listing a home from the company to the seller. These companies charge a fixed, non-refundable fee for “listing” the home.
This fee is in addition to the commission, and it can approach $500. However, having gotten this fee, the listing company is more willing to take a slightly lower commission for the sale of the home. If you change companies, don’t sell the home or decide to take the home off the market, the listing company keeps the fee.
As for the termite fee, it is really a small cost relative to all the others. Unfortunately, given where you are in the transaction, it appears that you will have to bear that expense. In some states, custom dictates who pays what closing expense. If there is a law in your area that requires the seller to provide a termite inspection, then you’d have to provide it. If there is no law on the issue, local custom in your area would dictate who should pay the fee.
Given that you say that at least one other buyer paid for a termite inspection for your home, it might be that you were not required to provide a termite inspection and that your buyer negotiated that point in the purchase and sale agreement. If the buyer requested that you obtain and pay for a termite inspection in the contract, you were obligated to obtain it. The same might be said about the home
There’s not much you can do now other than follow the terms of the contract you signed. Unfortunately, as you can see from the articles on seller closing costs on ThinkGlink.com, there are dozens of closing costs, and you’re probably lucky you don’t live in a state that would have required you to pay even more.
Good luck and we hope your health improves.
Ilyce Glink is the creator of an 18-part webinar and ebook series called “The Intentional Investor: How to be wildly successful in real estate,” as well as the author of many books on real estate.
(c) 2015 Ilyce R. Glink and Samuel J. Tamkin. distributed by Tribune Content Agency, LLC.