WHAT IS THE COST OF SELLING MY HOME IN TACOMA?
How much will it cost to sell my home in Tacoma and the greater area? We’re here to shed some light on this topic. I’ll lay the baseline for the cost of services you can expect when Selling your home in Pierce County. These costs are not paid out of pocket, but rather at closing and are withdrawn from your total proceeds of the home sale.
Washington EXCISE TAX
Every seller is obligated to pay taxes on their home when they sell. The amount you pay depends on the price you sell your home for.
In January 2020 Washington State adjusted their formula for calculating Real Estate Excise Taxes (REET). Previously every owner was taxed the exact same (1.78%), regardless of the sale price. However, now the tax is on a tier structure:
- Sales price between $1 – $500,000 is taxed at 1.6%.
- Sales price between $500,001 – $1.500,000 taxed at 1.78%
- Sales price between $1,500,001 – $3,000,000 is taxes at 3.25%
- Sales price of 3,000,001 and above is taxed at 3.5%
COMMISSION for REAL ESTATE SERVICE
Payment to the Realtor you hire to represent you (Listing Agent), as well as the Buyers Agent representative, you established before the home is listed. This too can vary depending on the price of the home. I will share with you what my tiered commission structure which is offered to all clients. Learn why it’s so important to hire a local Realtor here. HIRE A REALTOR
TITLE & ESCROW FEES
Title and Escrow handle the money throughout the transaction and provide the buyer and seller insurance for past and future claims. These services vary depending on the price of the home and annual taxes. Title and escrow cost for service range between 9 – 10% of your annual property taxes.
MORTGAGE PAYOFF
Any liens that you have on the property will be paid in full, at the time of closing. You don’t have to personally call and facilitate this with the lien holder. The Escrow company will make arrangements; this is apart of the services you are paying Escrow for.
STAGING YOUR HOME
Staging your home is one of the primary pillars of created the most lucrative and seamless home sale. Professional Stagers offer home sellers the opportunity to pay at the time of staging or at the time of closing. If you elect to pay for professional staging at the time of closing, there is generally an additional convenience fee of $200 – $250.
DUES and ASSESSMENTS
If the home you are selling is apart of an HOA, you will have to pay a transfer fee. The cost of which varies significantly. Have your Realtor, reach out to the association and inquire about these costs to prevent any surprises.
Lastly, if the city of planning to upgrade street lights, roads, sidewalks or anything that could positively impact the value of your home, you might have an assessment that is required to be paid at the time of closing by either you or the buyer. If you have received notification in the mail about such improvements, be sure to reach out to the City and convey the information you have to your Realtor. This is an item that is negotiated in the contract and the buyer might be willing to take on the cost.
Want more information on the cost of selling your home? Check out the video below and also visit this blog! – How To Sell Your Home (Part 4 of Series)
Looking for more of our Home Seller tips? Check out the full How To Sell Your Home series HERE!
