Are there upfront fees when selling your home?
Dear Phyllis,
I’m thinking of selling our home this summer. I have a few concerns about what to expect in fees. What upfront costs am I going to encounter when listing my home for sale with a Realtor®? Do I have to initially order any disclosures or inspections such as termite or home inspection? What should I anticipate?
In the prep stage
Dear Prep,
When interviewing real estate agents, be certain to ask the above questions. But generally your Realtor will bear all of the upfront costs associated with marketing your home.
1) In Los Angeles county, home sellers customarily pay for section I termite work (active infestation). Most real estate agents have relationships with termite companies and are able to provide their clients with a complementary termite inspection. I suggest having this report ordered ahead of time, so that if there is termite work recommended you will be apprised of the cost of the work. Having the report ahead of time insures that when you accept an offer from a buyer, you will have a fairly accurate idea of what your net proceeds will be.
2) Although, some real estate agents believe in pre-inspections, I think each situation is different. I believe that it is helpful for a buyer to be with the inspector during the inspection and that only reading an inspection report can be daunting. I also prefer that the buyer make the financial commitment by ordering their own inspection.
3) There are a few disclosures and reports which your real estate agent or escrow will order, but your Realtor should handle this or coordinate with escrow.
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