While the buyer is responsible for the majority of the fees involved in real estate transactions, the seller will also have expenses. Other than the agent’s compensation, the other expenses related to selling a home might occasionally surprise sellers. Before moving forward with the marketing of your land, you should consult with your real estate expert and calculate how much these costs would total in order to avoid being left with less money than you had budgeted for. Here are four extra costs to be aware of, especially if you want to sell land fast in Kansas.
- Legal fees
To oversee the contractor’s sale on your behalf and to make certain that everything goes well, you will need to engage a solicitor or a conveyancer. As a result, fees for solicitors and conveyancers can range widely. They can be as little as $500 or $1,000 if you only need a conveyancer, or they can be as expensive as $3,000 or more if you also need a solicitor.
The price might vary greatly depending on who you choose and how challenging selling the property is. Finding the ideal match will enable you to fulfill your requirements while staying within your budget.
- Real Estate Agent Commission
When selling unoccupied land, you should also take the real estate agent’s fee into account. Some agencies may charge a fee of up to 10% of the purchase price. Take into account how tirelessly the agent will promote and sell your land.
Some agents lack knowledge about nearby transactions of vacant land. In an effort to win your business, they could give you optimistic estimates of the price at which they believe they can sell your land. The property is then overpriced and will be on the market for months.
- Levies, Rates, and Taxes
The conveyancing attorney will need a clearance certificate issued by the local authorities confirming that all rates and taxes have been paid in full as part of the process of selling a property. In rare circumstances, the seller may be forced to make payments due two to six months in the future.
When you decide to place your land on the market, it is important to prepare and budget carefully because the value will be an estimate based on historical accounts and might be quite a substantial number for the seller. However, the municipality will reimburse the seller if the property is registered to the buyer in a shorter amount of time. This is done to guarantee that all expenses are paid while the property transfer is taking place.
- Bond Cancellation Costs
Canceling the bond will cost money if the property you are selling has a bond. While the price varies from bank to bank, be prepared to spend more. Make sure to confirm this with your bank in advance and account for the cost, which is charged upon transfer.
Before the consolidation of the bond in its whole as a consequence of a sale, a seller must send the bank a written notice 90 days in advance, failing which they risk paying the penalty for the notice period. Bond notice period penalty interest, a large but avoidable charge, will be assessed if notice is not given in a timely manner.
In rare circumstances, the transfer procedure may also cost the seller money. However, this is only true if the property is really sold without first notifying the bank, which leads to penalty interest. Prior to giving the bank notice of bond cancellation, you may need to pay extra costs using the money left over in your bond.
Although selling a house is not easy, it may be simpler with the appropriate real estate agent on your side. In order to ensure that you never feel lost or unclear about how to continue at any stage in the deal, real estate agents are able to help you through these procedures because they deal with these types of transactions on a regular basis. Alternatively, you can still opt to sell your land to cash buyers like Faithful Home Buyers and save yourself a lot of headaches.