Curious about some of the expenses you can expect when selling a home in Massachusetts?
Attorneys Fees. I am a firm believer that every seller should have legal representation. This cost of having a good lawyer who represents your best interest is cheap in comparison the cost you could inquire if there are problems in the transaction without representation. A Real Estate attorney in the sale of a home may do everything from reviewing legal contracts such as the standard Massachusetts purchase and sale agreement (P&S), any association documents (if there is an association), right of ways, etc. The attorney will also attend the closing either with you or as power of attorney for you.
Fees may vary, a rough estimate you can expect to pay anywhere from $400-$1000. On a basic home purchase fees will be on the lower end of the scale and if the transaction is more complex the fees may be higher.
Preparing a new deed. In Massachusetts it is the sellers responsibility to have a new deed prepared that gets recorded at the registry. The preparation of a new deed is usually done by the attorney representing you and should be disclosed in you attorney fees.
Other miscellaneous costs for mailing, filing fees etc, will be added to your Settlement Statement prior to the closing of your review. The total of these miscellaneous expenses usually amount to a few hundred dollars.
Massachusetts Title V. The Massachusetts Title V Inspection is an expense every seller in Massachusetts has to pay prior to transfer of title, if their property is not serviced by public sewer. You can expect to pay around $800-$1000 dollars for a Title V inspection. The cost may vary do to weather, accessibility to the septic tank or distribution box, and pumping fees.
A Title V septic inspection is good for two years. The septic certification can also be extended a third year if you pump the system each of the three years. Sellers typically have the Title V done before just before listing the home for sale, once the home is active on the market, or once an offer is accepted. Your realtor can discuss the pros of each.
Massachusetts Tax Stamps. In most areas of Massachusetts the tax stamp equals $4.56 per thousand dollars of the sales price of the home. For example if you sell your home for $500,000, you would owe the State of Massachusetts $2,280.00 ($4.56 x 500). This fee paid for the tax stamps are forwarded to the Commonwealth of Massachusetts Department of Revenue.
Smoke & Carbon Monoxide Detector Certification. In Massachusetts the seller must have their smoke and carbon monoxide detectors inspected prior to closing. The inspections are done by the local fire department in the town where the home is located. Inspection and certificate generally range from around $25-$100. New regulations have been adopted which you should be familiar with. More information found at Massachusetts Smoke Detector Regulations. New or additional detectors may need to be installed.
Contact Stephen Oates of Bean Group for more information or to set up a FREE Seller Consolation Session.
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