How Much Does It Cost To Sell A Home In Arkansas?
If you’re thinking about selling your home, you are probably wondering exactly “How much are closing costs when you sell a house in Fort Smith?”
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 Arkansas, 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.
What fees make up Closing Costs?
“Closing Costs” is a broad term used to describe the fees associated with closing on a property. There are certain fees that the seller will be responsible for and some that the buyer will have to pay.
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 Fort Smith, 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 Fort Smith 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
If a termite clearance letter is required for a loan or requested by the buyer, the property will be inspected by pest professionals for insects that can cause structural damage to the home. In Arkansas, the average cost for a termite clearance letter is $300.
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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Title search fees vary from title company. If you and the buyer close at the same title company, you may even receive a discount on your title search. This fee ranges from $200-$500. For this example we will use $250.
There is a lot of paperwork that goes along with the closing process and you may be required to pay a fee for document preparation or for a courier. This can cost between $50 and $100.
In Arkansas, property taxes are paid in rears. Because of this, when you close as a seller, you will owe a credit of the yearly tax bill to the buyer for the pro-rated taxes during the time you owned the home. This cost varies based on your property taxes and length of ownership.
Depending on the real estate contract, you may be paying for a home warranty for the buyer. An average home warranty policy in Arkansas costs $600. Did you know that I give complementary home warranties to seller’s that list their property with me? Contact me to learn more!
With large lots and acreage being popular in Arkansas, you may be required to pay for a survey of the land. The survey cost varies and can cost anywhere between $500 to $1000.
Choose an Arkansas Realtor to Help You Sell
With the help of a Fort Smith Real Estate Specialist such as Cheryl Law White, you are more likely to sell your house quickly and maximize your value. You need someone who knows how to sell an Arkansas house and is familiar with the rules and regulations in the area.
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.
I wish you success!