Closing Costs When You Sell A House in Little Rock
If you are thinking about selling your home, you are probably wondering exactly “How much are closing costs when you sell a house in Little Rock?”
This list is strictly an estimate and should in no way be held as the true and actual cost but it will give you a good estimate. Costs vary based on loan and title companies used, the price of home, negotiations and so on. Also, depending on the offer, you may pay part of your buyer’s closing costs. In Little Rock, as in most states; selling a house is not as simple as finding a buyer, receiving a payment and handing over the keys. To sell a house in today’s market; you must be an expert or have the help of one in both selling and marketing property.
There are numerous cost associated with getting your home sold that you should be aware of. Consult with your agent, as costs will be specific to your transaction.
So, if you’re considering selling your home in Arkansas and want to ballpark your closing cost figures, keep reading!
What fees make up Closing Costs?
As a seller in Arkansas, closing costs are made up of fees associate with:
- Real Estate Agent Commissions
- Securing a Termite Clearance Letter
- A Title Policy
- Arkansas Transfer Tax
- Title Search
- Escrow Fee
- Title Insurance
- Prorated Property Taxes
In addition to these costs, as a seller you may also be paying for a home warranty for the buyer, covering some of the buyer’s closing costs or providing a survey. These costs if applicable, would also be included in the closing costs.
How much are Realtor commissions?
Real Estate Agent commissions vary depending on experience and location. In Little Rock, the typical commission to sell your home is 6% of the sales price. This commission covers both the listing agent as well as the agent that brings the buyer who purchases your home.
The commission covers marketing your home, getting it listed in the MLS, scheduling showings, holding open houses and many other things that very by agent. Professional photography, videography and running ads to increase exposure of your home may also be covered in the commission.
No two Real Estate Agents are the same. With that being said just because an agent offers to sell your home for a higher or lower amount of commission does not mean more or less money in your pocket. Instead of choosing an agent based solely on commission, go with the agent with the best marketing plan who you think will generate the most “buzz” for your home.
Let’s say that the average price of a home in Little Rock is $200,000 (which we will use throughout this example). If the commission to sell this home was 6%, you would pay $12,000 in total to cover your listing agent and the agent that brings the buyer.
Termite Clearance Letter
This fee is what pays for the actual policy explaining that you are selling your clear title to the buyer. The title policy ensures that no one can make any other claims of ownership to the property being sold. Fees may vary by title company, but for this example, it is $480.
Arkansas Transfer Tax
All real property is subject to a state-specific transfer tax. In Arkansas, the transfer tax rate is $3.30 per $1,000. To continue with our example, with a sales price of $200,000 you’d pay $660 to the state of Arkansas to record the deed of sale.
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Choose an Arkansas Realtor to Help You Sell
As you can see, closing costs can add up and it can be quite costly to sell a house in Arkansas. Sometimes ensuring that you have the best chance to sell your home for the most money means spending a little extra. Interested in working with Nicole? Check out what her clients say:
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Hi There! My name is Nicole Nark and I am a Real Estate Agent in Central Arkansas. I have personally wrote and researched the topics found in this blog so that I can provide quality and up-to-date content for you. Please share this article and leave me a comment if there is a topic you wish to learn more about!