How Much Does it Cost to Sell a Home in Maryland?
If you’re thinking about selling your home, you’re probably asking two important questions: First: How much is my home worth? And second: How much will I net from the sale?
We can help you answer each question. When you’re ready to discuss the sale of your home, the Ahrens Team will provide a thorough Comparative Market Analysis (CMA) of your specific property. While an instant Home Valuation Tool on many websites is a good first step, it cannot provide the most accurate current market price. Houses within the same neighborhood, even those next door to one another, will vary in value depending on a number of factors. A consultation with a member of the Ahrens Team and a tour of your home will enable us to pinpoint a much more specific value for your property.
Once the current market value of your home is determined, you can begin to estimate what you will net from the sale of your home by taking a look at closing costs.
There are four major fee categories for sellers in Maryland:
- Title Charges
- Government Recording and Transfer Charges
- Payoff of Mortgage (if applicable)
How much are title charges?
In Maryland, the buyer chooses the title company for the transaction. However, the seller does have a few title fees, and these typically include a settlement fee and a wire transfer fee. These fees are paid to the title company and usually total about $200-300.
How much will I pay in government recording and transfer charges?
This category includes city/county tax as well as a recordation tax, both paid to the county director of finance. There is also a state tax paid to the clerk of the circuit court. These fees are based off of a percentage of the sales price and typically range from 1.5-3%. The actual percentage varies per jurisdiction and is also variable based on contract negotiations, but typically these fees are split evenly between the buyer and seller.
If a seller has an outstanding mortgage on his or her home at the time of sale, the balance of the mortgage plus any accrued interest will be paid off at settlement. Any second mortgage, if applicable, would be paid off as well. There will be associated fees to prepare and procure releases as well as to record the payoff and track the mortgage satisfaction. The fees associated with the payoff run several hundred dollars.
How much commission will I pay?
In Maryland, commission fees are negotiable and vary based on factors such as agent experience, location, and agency. This fee includes marketing your home, producing professional photography, printing brochures, giving tours, holding open houses, communicating with other Realtors, and listing your property on the Multiple Listing Service and additional sites as well as social media. In addition, the agent will advise their clients on all aspects of the transaction and manage the home selling process from start to finish. Last but not least, the selling agent is obligated to pay his brokerage company as much as 50% of his or her portion of the commission.
In Maryland, generally the seller pays the entire commission to both the listing and buyer’s agents.
For best service, avoid choosing an agent based on low commission. Agents vary in skill and experience, and not all are equal in their ability to effectively market and sell a home. An effective and capable agent will produce more showings which in turn increase the likelihood of more offers. These offers, combined with excellent negotiation skills, can result in a higher selling price and more money in your pocket.
Depending on the terms of the negotiated sales contract and the market climate, seller costs may include covering some of the buyer’s closing costs, a warranty for the home, and/or general credits to which both parties agree.
In addition, depending on your needs, your Realtor may recommend utilizing the advice and services of a home stager to present your home in the best possible light to prospective buyers. Research has shown that proper staging can make a significant difference in the appeal of the home to as many buyers as possible, resulting in more offers. The Ahrens Team offers a free staging consultation for all listings. More extensive staging services are available from local experts for a fee.
Choose the Right Agent
When selling your home, choose the agent that will help you accomplish your goal of selling your home for the best possible market price in the time frame that fits your goals. Gary and Kathy Ahrens and their team provide you with excellent client service and expertise so that you can rest assured that your home sale is in good hands.
When you are ready to discuss plans to sell your home, call 410.978.6541 to discuss your real estate goals and plans. We look forward to helping you achieve a successful and satisfying home sale!