The largest of the real estate fees is typically the agents’ commissions which can upwards of 6% of the total sales price. On a home that sells for $500,000, this part of the real estate fees will amount to about $30,000. While many people understand that realtors make a commission on the home sale, the real cost of buying or selling real estate is much higher and includes a long list of fees. People need to know about how much all the real estate fees will amount to when preparing to buy or sell a home.
Escrow, for example, will cost around $1,000 depending on the sale. Title search and insurance fees will cost around $600-$750. Home inspections will cost a few hundred dollars. Home appraisals several hundred dollars more. Then, if the buyer is getting a mortgage for the home, there are loan application and origination costs, including prepaid interest, that usually add another 2-3% of the loan amount in real estate fees. Even this doesn’t account for home repairs, staging, and overlap housing costs.
All in, these real estate fees often add up to more than $10,000—not counting home repairs, overlap housing costs, and the realtors’ cut. In many cases, more than 10% of the total home value will get eaten up by these fees. This is a big reason why people in Colorado and Washington are turning to TRELORA and saving big on their real estate commissions.