While you may be looking forward to reaping a tidy profit from a home sale, make sure you factor in seller closing costs so you have a better idea about what your sale proceeds may be.

Most home sellers end up paying between 6% and 10% of the sale price in various closing costs, including real estate agent commissions, attorney fees, transfer taxes and more.

Given that the average sale price for a home in the U.S. was $513,400 in the third quarter of 2023, a seller with a home that price could expect to pay between $30,804 and $51,340 in closing costs.

If you’re getting ready to sell your home, it’s a good idea to know what fees you may have to pay and how much they’ll potentially cost. That knowledge can help you be more prepared — and maybe even find ways to bring the cost down.

• What are some common closing costs for home sellers?
• How to reduce closing costs
• What are other common expenses for home sellers?

What are some common closing costs for home sellers?

Both buyers and sellers are on the hook for closing costs, but they’re often higher for the sellers. As a seller, you can expect to pay between 6% and 10% of your home’s sales price. The buyer, on the other hand, usually pays between 2% and 5%.

Here are some of the typical closing costs for sellers.

Real estate agent commissions

In a typical home sale, the buyer’s real estate agent and the seller’s agent will split a 5% to 6% sales commission, with each agent getting half. The agent you hired to sell your home did their job, and the buyer’s agent also did their job by bringing you a customer that’s ready to buy your home.

Learn more about how real estate agents get paid.

Transfer tax

Depending on the rules set by your state or local government, you’ll typically also need to pay real estate transfer taxes. In Washington state, for example, these taxes range from 0.25% to 2% of your home’s purchase price, depending on where you live.

Seller concessions

As you negotiate your home’s purchase price with your buyer, it’s not uncommon for them to ask you to help pay some of their closing costs or cover needed repairs — known as seller concessions or credits. If a problem is discovered during the home inspection, for example, your buyer may ask for a seller credit to pay for the cost of repairs.

Title insurance

As the seller, you’re generally expected to pay for title insurance. This protects buyers and their lenders in case any issues with your home’s title pop up. For example, if someone filed a lien against your home, that could complicate your sale.

Title insurance usually costs around $1,000, but the cost can vary depending on where you live.

Escrow fees

You’ll work with an escrow company who will oversee the transaction and make sure everyone’s holding up their end of the bargain when it comes to transferring the money and ownership of your home.

Escrow companies usually charge about 1% to 2% of your home’s sale price for this service. Whether you or your buyer pays it in full or splits the cost depends on how things are done in your area.

How to reduce closing costs

You’ve already got a lot on your plate if you’re selling a home, but it’s important to know that you may be able to save money on these fees. In some cases, it can be well worth your time.

Negotiate your real estate agent commission

The commission rates sellers pay can be negotiated. If you were to negotiate a 5% commission rate with your real estate agent instead of a 6% rate, you could save more than $5,000 in the sale of an average-priced home ($513,400 in the third quarter of 2023).

Sell your own home

If you have time and you’re savvy with legal contracts, putting together teams, negotiating terms and marketing, you might be a good candidate for a DIY home sale — and skipping the seller’s agent commission entirely. But you may still have to pay the buyer’s agent commission, even if you don’t use your own agent.

For sale by owner, or FSBO, sales made up about 10% of all home purchases in 2022, according to the National Association of REALTORS® — though half of those were to people the sellers already knew. These homes typically sold for about $120,000 less compared to homes sold with the help of a real estate agent, the trade group said.

What are other common expenses for home sellers?

Closing costs represent a big chunk of your financial outlay when selling your home, but they’re not the only expense. Make sure you consider these other factors, which can be pricey.

Presale inspection

You’re not required to get a presale home inspection, and opting out can save you $250 to $500, on average. Generally, buyers will pay for their own independent home inspection.

A home inspection may be helpful because it can flag any repairs you may need to do before you put the home on the market. It also decreases the chance of any surprises later when the buyer gets their own inspection done. That can help you speed up the process of selling your home — and you may even get a better price for it too.

Home cleaning and repairs

You may want to catch up on any overdue maintenance and make any needed repairs to improve the odds of a quick sale. Any issues with your home that you don’t fix must be listed in a seller’s disclosure, which is a legal document that home sellers must provide that reveals known problems.

A full top-to-bottom house cleaning is also a good idea. A dirty toilet or stained carpeting can deter potential buyers from putting in an offer. Though you can tackle this work yourself, hiring professionals to do the job can help you bring your home to market sooner.

Home staging

The final cherry on top of getting your home ready for sale is home staging. The median cost of using a staging service is about $1,500, while homeowners who choose to have their agent do the staging will pay around $300, according to the 2021 survey from the National Association of REALTORS®.

What’s next?

You’ll need to do some research to see what closing costs may cost in your area and how they’re generally divvied out between the buyer and the seller.

Once you have this information, you can put together a home-selling budget so you have a good idea about how much it’ll cost to sell your home. Once you have a realistic estimate of your home-sale proceeds, you can better plan how much money you’ll have for the purchase of your next home.

Estimate your closing costs

Use our closing costs calculator to get a better idea of how much your closing costs could be when buying a home.

Investing in money-saving home improvements can help lower your monthly bills and help you save cash in the long run. Plus, some upgrades may boost the value of your home.

These home improvements may increase your energy efficiency, cut water use or improve the performance of your home’s systems, all of which can lower your expenses.

Here are some money-saving home improvements that could cut day-to-day costs and make your home more valuable.

• What home improvements can save energy?
• How can I save on repairs and maintenance?
• How can I pay for home improvements?
• What’s next? Financial resources for home improvement

What home improvements can save energy

Electricity is the biggest utility bill most homeowners deal with, making up about a third of total utility costs for the average U.S. homeowner, according to the Bureau of Labor Statistics. Because electricity tends to cost more than water, natural gas, phone services or other utilities, it makes sense to focus on improvements that can reduce your electricity burden. 

Energy audit

The first step you might want to consider for any energy-saving home upgrade is an energy audit. A professional assessment will reveal the specific areas of your home that need work, so you’re not paying for upgrades you don’t need.

A professional home energy assessment might cost several hundred dollars. If you do the audit yourself, it might not be as thorough, but you’ll likely find some of the easier areas to address.

Insulation and air sealing

Proper insulation can significantly reduce your heating and cooling costs. You can ensure that your home is well-insulated by checking the attic, walls, floors and crawl spaces — and adding insulation where needed.

The Environmental Protection Agency estimates that homeowners can save 11% on heating and cooling costs by sealing air leaks and adding insulation.

Solar energy system

If your home gets direct sunlight, solar panels could be a good way to reduce your energy bill — though the initial investment might cost a lot. The average 5-kilowatt-hour home solar system in the U.S. can supply 50% to 75% of most people’s total electricity needs and costs between $15,000 and $35,000, according to the U.S. Department of Energy.

Although adding a solar power system to your home is a serious investment, tax breaks can help. Under the Inflation Reduction Act, you may qualify for a credit of up to 30% on your federal income taxes for installing solar heating, electricity generation and other solar home products.

To see what state incentives may be available to you, visit www.desireusa.org.

Smart thermostat

A smart thermostat allows you to program your home’s temperature to keep you comfortable while saving money. By allowing you to set different temperatures for various times of the day, you can reduce energy use when you’re not at home or while you’re sleeping.  

Ceiling fans

You can use ceiling fans in combination with your existing heating and cooling systems to provide more effective air circulation and temperature control, reducing the overall energy demand of your HVAC system.

For maximum savings, install energy-efficient ceiling fans that are Energy Star-certified, since those models are up to 40% more efficient than conventional ones, according to the U.S. Department of Energy.

Energy-efficient windows

Energy-efficient windows can cut energy costs by reducing heat transfer, improving insulation and minimizing drafts. The Department of Energy says that heat gain and loss through windows accounts for 25% to 30% of a homeowner’s heating and cooling energy use, so it’s important to choose the most efficient windows you can afford for your particular climate.

While new energy-efficient windows may not be cheap, they can lower your energy costs (and save you money) over time. To make sure your upgrades make sense, consider doing a cost-benefit analysis. The national average cost to replace all of the windows in a home with vinyl windows was about $20,482, according to Remodeling magazine’s 2022 Cost vs. Value report.

And if your existing windows are in good shape, you can improve them with new caulk, weatherstripping or solar control film, among other cost-effective improvements.

Learn more: Do new windows increase home value?

How can I save on repairs and maintenance?

You may be able to save on home repairs by addressing potential issues before they become major problems. Here are some improvements and strategies to minimize potential issues.

Gutters

Having functioning gutters is more than an aesthetic benefit when it rains — it can also prevent costly water damage. Rainwater that runs straight off of the roof can pool at the base of your home — leading to potential rot, mildew, a cracked foundation or even collapsed basement walls.

The cost to install a gutter typically ranges between $622 and $1,679 with a national average of $1,138, according to HomeAdvisor.

Security system

In addition to offering peace of mind, a visible home security system can — at the very least — serve as a potential deterrent against theft. Also, your homeowners insurance company may provide a discount on your premium.

Landscaping

Besides beautifying your home, a thoughtfully designed landscape can cut your heating and cooling costs. By planting trees in strategic spots to shade your home, you can save up to $250 a year on energy costs. And planting native species around your yard can help lower your water bill and decrease maintenance — all while helping the environment.

Take a look at potential environmental dangers, too. For example, if you live in a wildfire zone, creating a defensible space around your home may help protect it.

While towering trees can add beauty to your yard, they can also pose a hazard. Hiring an arborist to assess your trees for stability and disease can help protect your house from falling trees and branches.

How can I pay for home improvements?

Before you borrow money for home improvements, carefully consider the costs and benefits.

There are a number of ways to finance potential upgrades. Here are some options to consider:

• HELOC: A home equity line of credit, or HELOC, allows you to borrow against the equity you’ve built up in your home. A HELOC gives you a revolving line of credit that you can use during a draw period. During that time, you can make interest-only payments or pay down some of the principal balance and re-borrow as needed. HELOC interest rates are usually variable, which means your monthly payments can fluctuate.
• Home equity loan: A home equity loan, which usually has a fixed rate, is another way to borrow against the equity in your home. The amount you can borrow will depend in part on your home’s value and how much you owe on your mortgage.
• Personal loan: A personal loan typically doesn’t require collateral. Compared to other options, interest rates may be high — especially if you don’t have strong credit. Some lenders may charge upfront origination fees.

Another cost-saving tip: Last year’s Inflation Reduction Act makes it easier to go green by offering tax credits for a number of eco-friendly home upgrades.

What’s next? Financial resources for home improvements

While there’s an upfront cost for many of these home improvements, the long-term savings can outweigh the initial investment.

You might be able to save on energy-efficient home improvements by looking into potential grants, low-cost loans, rebates or other financial assistance. Here are some resources to check out:

• Your electricity provider
• State and local governments
• Your local conservation district
• Federal tax credits and incentives
• U.S. Department of Energy incentives and resources

Gone are the days of needing to visit the bank in person and withdraw cash to pay someone.

Thanks to the ever-growing digital world, we now have easier options. There are so many ways to send money that it’s tough to sort out your options.

Quontic Bank checking account at a glance

Quontic Bank is a relatively obscure online bank that’s launched some big innovations. It’s a Community Development Financial Institution designed to increase access to quality banking products in underserved communities.

Is Quontic Bank an online bank?

Yes. Even though Quontic Bank does operate a few brick-and-mortar office locations, they’re just that — offices, and not branch locations where you can do your banking in person.

In lieu of physical bank branches you can walk into, Quontic Bank offers robust online and mobile banking support.

Is Quontic Bank a legitimate bank?

Yes. Although it seems similar to other fintech companies that look like banks but actually aren’t, Quontic Bank is a real bank that offers interest-bearing checking accounts. It’s registered with the FDIC so your deposits are fully insured up to the federal limits.

Direct deposits and wire transfers are two common ways to digitally send and receive money, but they both have different uses.

If you’re looking to send a large amount of money, or send it quickly, a wire transfer can be a great option. If you’re on the receiving end, you can get the money almost instantaneously in some cases. On the other hand, you generally won’t be using direct deposits to send people money — it’s more a way that businesses and organizations can send money to individuals.

Read on for more about how wire transfers and direct deposits work, plus other options for sending and receiving money.

• What is a wire transfer?
• What is a direct deposit?
• What’s the difference between a wire transfer vs direct deposit?
• Wire transfer vs direct deposit: Which is better?

What is a wire transfer?

A wire transfer is one of the fastest ways you can send or receive money from virtually any bank account, either in the U.S. or abroad.

Wire transfers are especially popular when speed is necessary. They’re also great for large transfers like a house down payment because there’s no need to carry around (and risk losing) wads of cash.

But there are some risks. Wire transfer scams — where thieves try to trick you into wiring them money — are a reality. Another thing to keep in mind: Wire transfer fees can be expensive, costing around $30 for domestic wires and $50 for international wires. Some banks may even charge you a fee to receive a wire from someone, usually from $5 to $15.

How wire transfers work

To send a wire transfer, you’ll need the bank name, routing and account numbers from the person you’re sending it to (and vice versa: You’ll need to give your banking details to someone wanting to send you a wire transfer). You’ll submit these details along with how much you want to send to your bank in the form of a wire transfer request.

Your bank will take the money from your account and pass those details on to the recipient’s bank, which will then deposit that amount into their account. If the accounts are in different banking regions or countries, your bank may need to pass on the request to an outside network such as SWIFT or Fedwire. These networks act as a sort of third-party post office to make sure the funds get sent to the right bank.

What is a direct deposit?

Direct deposits, on the other hand, are a popular way for businesses and organizations to deposit money into your account. So they’re not for sending money to anyone — instead, it’s the way 93% of people receive their paychecks via direct deposit from their employers, according to the American Payroll Association.

Direct deposits are also considered to be a safe way to receive money. It’s generally free for organizations to send you money via direct deposit, which is why it’s so popular. The downside is that direct deposits can take a bit longer to process.

How direct deposits work

Unlike wire transfers, which are processed one by one, direct deposits use the Automated Clearing House (ACH) network, which batch-processes them. To set up direct deposits you’ll need to sign an ACH authorization form and give the sender your bank details — something you’ll usually do during the onboarding process with your employer.

When it comes time to pay you, your employer submits a direct deposit request to their bank, which batches them together and sends it to the ACH after the close of the business day. The ACH, in turn, unscrambles the requests and stacks them together into new batches to send out to each bank overnight.

Each bank then unpacks these requests and then credits accounts with the correct amounts.

What’s the difference between a wire transfer vs direct deposit?

Wire transfers and direct deposits are both methods for moving money around. Here’s a summary of their differences:

Wire transfer vs direct deposit: Which is better?

Wire transfers aren’t necessarily better than direct deposits, or vice versa. They both achieve the same goal of moving money around, but they’re used for different purposes.

If you need to send or receive money fast, especially for large amounts or international transfers, a wire transfer is your best bet. Just remember there’s a fee to pay. 

If you’re looking to get a check from your employer, the government or some other group and you don’t want to mess with paper checks, direct deposit is the way to go.

Next steps

If you need to send or receive money from your bank account without having to use cash or a paper check, a wire transfer or direct deposit aren’t your only options. Here are some other good ways to do online money transfers:

• Zelle: Many bank accounts with online access come with this app, which lets you transfer small amounts of money between friends quickly for free.
• PayPal: PayPal allows you to send and receive money internationally and is widely used for online shopping.
• Venmo: Venmo works similarly to PayPal but includes social elements, such as the ability to send fun emojis and text messages with friends when you’re splitting a bill.
• Cash App: Cash App offers nifty features like a DIY debit card and the ability to send and receive money from accounts in the United Kingdom for free.
• Western Union: One of the original money transfer services, this company can be expensive but is popular for sending almost-instant payments abroad.

U.S. Bank checking accounts at a glance

As the fifth-largest bank in the country, U.S. Bank serves as a one-stop banking shop with options for credit cards, loans, investments and deposit accounts — including checking accounts. Just like other big banks, it has thousands of branch locations for easy access. But you’ll pay for it through very low interest rates, a confusing program and the possibility of paying high fees.

Is U.S. Bank a good bank to bank with?

If you live out West or in the Midwest and want to bank in person, or you want an interest-earning checking account with a rewards program, U.S. Bank may be a good option. However, you’ll have to be OK with the possibility of paying higher fees and earning low returns on your deposit.

If you want to deal with a more straightforward fee-free bank or you’re searching for in-person banking in other parts of the country, you may want to keep looking.

If you have high-interest debt, you may be considering using home equity to pay it off.

If you run the numbers, you may find out it’s a solid strategy for your situation. In the best-case scenario, using your home equity may allow you to pay off that debt at a cheaper interest rate than what you’re paying now.

A lower rate means more of your monthly payments go toward paying down the principal balance and less toward paying interest, which means you could get out of debt sooner. But in the worst-case scenario, you could lose your home if you’re unable to repay the debt.

We’ll review the different ways you may be able to tap home equity as well as alternatives you may consider.

• Can I use the equity in my home to pay off debt?
• What are my options for using home equity to pay off debt?
• Is it a good idea to take equity out of your house?
• Next steps: What are my alternatives?

Can I use the equity in my home to pay off debt?

In short, yes — if you meet a lender’s requirements. You may be able to use your home equity to finance many financial goals, including paying for home improvements, consolidating high-interest credit card debt or paying off student loans.

Just like other types of financing, you’ll have the best chance of approval at the lowest rates if you have solid credit, a strong and consistent income and a low debt-to-income ratio. You’ll also need to have built home equity that you’re able to tap.

How much home equity do you have?

First, you’ll need to consider the amount of equity you have in your home. Just because you own a home doesn’t mean you’ll be able to use home equity financing.

Many lenders allow you to borrow up to 80% of your home’s equity. You can calculate the potential maximum amount you’d be able to borrow with home equity financing using this formula:

potential maximum financing amount = your home’s market value * 0.80 – your mortgage balance

For example, if you own a home worth $250,000 and you still owe $200,000 on your mortgage, you might not be able to use home equity financing since you’re right at the 80% mark. But if you only owed $100,000 on your mortgage, you may be able to borrow up to $100,000.

If you’ve recently bought your home or used a zero-down-payment mortgage, it can be quite some time before you’re even eligible to apply for home equity financing. It can take a long time to make progress on paying down your mortgage, especially in the first few years since a greater percentage of your payments will go toward interest than principal.

On the other hand, if home prices are rising rapidly (and your home equity along with it), you may be eligible sooner than you think. According to a 2022 TransUnion report, home equity levels are up 22% between the first quarters of 2021 and 2022, and 52% compared to five years before.

What are my options for using home equity to pay off debt?

There are three main types of home equity financing that you may be able to use to pay off your debt. Each of these options works a little differently, and that can have a big impact on whether you save money.

Cash-out refinance

A cash-out refinance allows you to replace your current mortgage with a new, larger one. The extra amount is paid out to you as cash that you’ll repay over the course of your new mortgage (often 15 or 30 years).

How much cash you may be able to take out depends on the amount of home equity you’ve built up.

For these reasons, a cash-out refinance can be a good option if you can check these boxes:

• You can get a lower rate on a cash-out refinance loan than both your current mortgage and your other debt.
• You want a lump sum
• You either won’t be extending your mortgage term by very much or you’re financially able to handle paying it off over a longer period of time. Keep in mind that the longer your loan term, the more in interest you usually pay.

Home equity loan

When mortgage rates are rising, another good option for many people is a home equity loan. This allows you to keep an already-low-rate mortgage while still using home equity to pay off debt.

A home equity loan is considered a second mortgage because if you default on your debt, the primary mortgage takes precedence for repayment. Term lengths for home equity loans typically range from five to 30 years.

A home equity loan may be a good option if:

• You want a lump sum installment loan with a fixed interest rate
• You want to keep your current mortgage rate
• You have access to enough equity to pay off your current debt and can receive a lower rate than the combined average rate of all your debt

Home equity line of credit (HELOC)

A home equity line of credit, or HELOC, can be a good choice if you need to pay off some debt now and also want the option to borrow money in the future, such as to make home improvements.

HELOCs are usually divided into two phases: a draw period when you can borrow money and make payments, and a repayment phase when the draw period ends and you have to repay what you’ve tapped on the credit line. Keep in mind that HELOCs usually have variable interest rates.

A HELOC may be a good option if:

• You want access to a revolving credit line
• You don’t want to give up your current mortgage rate
• You don’t mind a variable mortgage rate

Is it a good idea to take equity out of your house?

Under the right circumstances, using home equity to pay off debt really can help you get out of debt faster and save money. The only way to know for sure is to run the numbers and see how much each option may cost you.

Here’s an example of how to do this if you’re working to pay off $20,000 worth of credit card debt. (Be sure to add any fees to your cost calculations as well.)

Run your numbers with Credit Karma’s debt repayment calculator.

One important consideration is how secure you are in making these new payments. If you think there’s any chance you could default or you don’t feel comfortable taking that risk, using home equity to pay off debt may not be a good choice for you.

Next steps: What are my alternatives?

Home equity financing isn’t your only option if you want to pay off your debt sooner and save money. Here are a few other options to consolidate your debt at a lower rate that don’t use home equity at all:

• Personal loans: You can use an unsecured personal loan to pay off debt. They typically have fixed rates and fixed installments.
• Nonprofit credit counseling: A credit counselor can work with you to create a tailored debt plan and give you financial knowledge.
• Balance transfer cards: These credit cards can have attractive introductory rates but often come with a balance transfer fee.
• Debt payoff plan: If you want to create your own payoff plan, two popular methods are a debt avalanche and a debt snowball plan.

BMO Harris Smart Advantage checking accounts at a glance

BMO Harris is a popular regional bank with most of its locations in Arizona, Florida and the Midwest. It’s a full-service bank with options for savings accounts, loans, investment accounts, and more — including checking accounts.

It currently offers three main options for checking accounts, the most popular being the Smart Advantage as the main BMO Harris everyday checking account.

What does everyday checking mean?

An “everyday checking account” is a colloquial term that usually describes a basic, no-frills checking account that meets the needs of most people.

It offers more perks than an entirely bare-bones account, such as a second-chance checking account that some banks offer to people getting back on track financially. It’s also not as feature rich as the premium checking accounts that some banks offer, which usually come with requirements like a high minimum deposit amount, an ongoing monthly deposit amount minimum or other criteria to keep the account open.

The costs of selling a house can add up. If you’ve never sold a home before, knowing what to anticipate can help lower some of your “seller stress.”

It helps to break down the process of selling your home into a few main phases where you might need to spend money — the preparation stage before the house goes on the market, the negotiation phase with potential buyers and the final stage where the deal is done and you’re preparing to close.

There’s no nationwide, standardized amount for the services and expenses associated with selling a house. Much depends on where you live, state law and other variables. But knowing these expenses are coming can be half the battle.

• What are common closing costs for a seller?
• What are seller concessions?
• How much is a real estate agent’s commission?
• Other closing costs to consider

What are common closing costs for a seller?

Even before your home is listed on the MLS, you’ll probably incur at least a few costs. Here are some you may face.

Presale inspections

Depending on where you live, a presale inspection may be required before you put your house up for sale. The presale inspection is something the seller must arrange, unlike an appraisal which is lender-initiated.

The presale inspection is also different from the buyer-initiated home inspection, which house hunters should use to get a realistic idea of the condition of the home.

Home inspections typically cost several hundred dollars.

Home repairs

If there are obvious broken items in your home that you think might detract some buyers, such as dings in the walls or a leaky faucet, fixing these ahead of listing your house may be a good idea.

That said, in a seller’s market, there may not be as much pressure to have the perfect presentation. More competition for a home may mean less scrutiny over minor imperfections.

Home cleaning

Aside from repairs, having your home professionally cleaned from top to bottom can also help you market your home better. You can expect to pay anywhere from $450 to $650 to deep clean a house up to 3,500 square feet, according to HomeAdvisor.

Home staging

Home staging is a strategy to help your home sell faster by depersonalizing and decluttering so potential buyers can more easily imagine themselves in the home. You may rearrange furniture or hang new art, for example.

It’s generally up to you to pay for any professional staging services to help make your home stand out to potential buyers. The median cost of staging is $1,500, according to a 2021 survey from the National Association of REALTORS®.

Cost-conscious sellers who stage the home themselves may be able to sidestep that expense, but there may still be costs associated with cleaning supplies, landscaping and tools or other items needed to get the job done.

What are seller concessions?

Once you’ve found a buyer, you’re not at the finish line yet. Depending on how any inspections, appraisals and buyer financing shakes out, your overall costs may change.

The person buying your home can ask you to help pay some of their closing costs — known as seller concessions.

But you’re limited in how much you can pay toward seller concessions. Depending on the financing that the buyers are using, you’re limited to the following amounts:

• VA loans: Up to 4% of your home’s sales price
• FHA loans: Up to 6% of your home’s sales price
• Conventional loans: Between 3% and 9% of your home’s sales price, depending on the down payment size.

What happens if you have an appraisal gap?

If your home appraisal comes in less than the sale price you’ve agreed to, the homebuyers may ask you to lower the price of the home to match the appraisal. According to data from CoreLogic, a real estate analytics company, appraisal gaps are more common when bidding wars happen, with 19% of home sales experiencing an appraisal gap during the red-hot market in May 2021.

How much is a real estate agent’s commission?

As the home seller, you should expect to pay the real estate agent’s commission fees, which together typically make up about 6% of the sales price of the house.

You’ll pay the agents during closing by subtracting their fees from the home sale proceeds.

Other closing costs to consider

Here are some additional costs you don’t want to forget about when selling your house.

Settling your bills

When you sell your home, you’ll need to settle your final bills. Don’t forget to ask about getting back any deposits you may have made to start certain services or utilities.

In the time leading up to closing day, it’s easy to overlook the need to return hardware such as satellite dishes, hardware supplied by your internet service provider and home security systems — but failing to do so can cost you.

Paying federal capital gains tax

If you sell your home for more than you bought it for, it’s also important to know that you may owe federal capital gains taxes as a result.

Under IRS rules, you may exclude a certain amount of appreciation as long as you’ve lived in the house for at least two out of the past five years. In 2022, the IRS listed these exclusions as up to $250,000 (if you’re a single filer) or $500,000 (if you’re filing jointly).

Transitioning to a new home

Finally, don’t forget to count the costs of moving to your new home as expenses related to selling your house. These expenses may include …

• Renting or buying your next home
• Moving to your new home (rental truck, moving crew, mileage)
• Setting up new utilities (gas, electric, internet)

Next steps

Most of the costs of selling a house are highly variable, so it’s a good idea to familiarize yourself with these costs in your housing market. You can also create a budget for selling your house the way homebuyers do when they prepare to buy a home, considering tax breaks and tax liabilities, as well as the other related costs. Doing so may take time but it’s likely well worth the effort.

CMG Financial is an online mortgage lender that offers many different types of mortgages, term lengths and rate structures.

Things to know about a CMG Financial mortgage loan

Wide range of mortgage products

CMG Financial offers an impressive range of mortgage loans. CMG Financial also has many loan length options.

Not transparent about loan costs

Generally, mortgage rates will vary based on a variety of factors including your credit and term length. If you want to know the possible range of rates and terms, you’ll need to contact a CMG Financial rep.

Who is a CMG Financial loan good for?

CMG Financial might be worth considering for first-time homebuyers or people looking for a range of loan options. You can apply for the most common types of mortgages through CMG Financial, and depending on mortgage type, you may be able to further customize your loan term lengths.

Making a separate trip to the bank for routine things like depositing a check can be a hassle.

That’s why a lot of people choose to deposit their checks remotely over the internet. These days, it’s quite safe, but you need to know how to do it.

There are also special things to know about how to deposit a check online. For example, your bank might place special holds on this money that you can get around by depositing checks in person.

We’ll give you the full scoop on how to use remote deposit to get this task done sooner.

• Can you deposit a check online?
• How mobile check deposit works
• What to consider when depositing a check online
• Is depositing a check online safe?

Can you deposit a check online?

Yes, just about anyone can deposit a check online if they have access to a smartphone or a scanner.

Depositing a check online is also known as a “mobile deposit,” “remote deposit” or “remote deposit capture” in the banking industry. All it means is that you’re depositing a check over the internet, without physically visiting the bank.

Banks have a couple of ways that you can do this. A popular way is to simply use your bank’s app to snap photos of the check. Some banks also allow you to deposit a check using a scanner if you don’t have a smartphone.

If mobile deposits are something you want to do, make sure that your bank allows for it before you sign up for an account.

How mobile check deposit works

The process for how to deposit a check online can vary a bit from bank to bank, but in general, it’s a similar process all around. Here’s how to do it, step by step:

1. Download your bank’s app and log in: You can find your bank’s app in your relevant app marketplace or ask your bank how to download it. Then, log into your bank account through the app.
2. Sign the check: Sign the back of the check. Many banks also require you to add a special note such as “for mobile deposit only.” It’ll tell you what, if anything, to write while you’re taking photos of the check.
3. Choose the account you want to deposit it into: In the app, navigate to the account you want to deposit the check into. You should find an option in this specific account for “deposit a check” or similar wording.
4. Take a photo of the front and back of the check: The app will prompt you to take a photo of the check. It’s best to place it on an uncluttered, clear background, and make sure the entire check is in the frame. Some apps automatically snap the photo for you once it detects a good image.
5. Enter the deposit amount: Next, the app will prompt you to enter in the amount of your deposit.
6. Review the deposit details: Check everything to make sure it’s correct, and then hit “deposit.” It’ll now be processed according to your bank’s deposit policies and timelines.
7. Keep your check until it’s cleared: Keep your check in case anything goes wrong with the deposit.

What to consider when depositing a check online

Depositing a check online works similarly to when you do it in person, but there are a few extra things to think about. Make sure you consider these before you deposit a check online:

• Deposit limits: Banks generally have caps on how much you can deposit remotely within a certain time frame. If you’ll be depositing big checks frequently, you’ll want to know what these limits are.
• Holds on funds: Banks take time to process your remote deposit, during which time your funds are on “hold” and may not be available in your account yet. If you need cash right away, it might be better to deposit the check in person.
• Tech savvy: Even though the process is fairly intuitive, you’ll need to figure out how to navigate the process for your specific bank’s app.

Is depositing a check online safe?

You wouldn’t be the first person to wonder whether it’s safe to send your financial details over the internet. But rest assured: While nothing is truly foolproof, depositing a check online is just about the safe as you can get.

Banks use encryption technology to protect your online account. Many banks even offer higher-grade security features, such as fingerprint and face recognition technology or two-factor authentication. If you’re particularly concerned about security, these are two good features to look for when choosing a bank to work with.

There are a lot of things you can do to make depositing a check online safer too:

• Enable two-factor authentication
• Don’t log into your bank app while on a public Wi-Fi network
• Log out of your bank app when you’re done depositing the check
• Learn how to avoid check fraud
• Choose strong passwords for your bank account

What’s next?

Depositing your checks online can greatly simplify your life, but it’s not your only option for cashing one. Many banks also allow you to mail checks in or to drop them in secure deposit boxes or even ATMs.

And if you’re just more comfortable depositing them directly with a teller, that’s fine too. That’s the great thing about banks — there are many options for you to choose from to manage your money best. 

Long before online listings, real estate brokers formed partnerships to share information on properties for sale.

This began in the late 19th century, with data and resource sharing amongst otherwise competing brokers. Today that tradition continues with the multiple listing service, or MLS, which makes it easier to connect buyers to sellers. We’ll walk you through how it works.

• What does MLS stand for?
• What home buyers should know about the MLS
• What home sellers should know about the MLS
• Is the MLS private?

What does MLS stand for?

An MLS, which is an abbreviation for multiple listing service, is a tool real estate brokers use in partnership with agents who are working with homeowners who want to sell. An MLS is a cooperative venture that helps small real estate brokers compete with much larger operations through information sharing about properties for sale.

There’s no centralized MLS. Instead, there are more than 800 separate multiple listing services around the country, centered on regional markets with some overlap. These have specific names, such as Northwest MLS which covers Washington state, or Stellar MLS which covers Florida and Puerto Rico.

Each MLS is formed by a local group of brokers and agents. MLS members list properties they have for sale, and other members can show them to house hunters.

An MLS is not directly accessible by the public, but an important portion of its data is, thanks to MLS members who post real estate listings with information from the MLS database. Your real estate agent will enter your property information for you.

If you’re a house hunter, the information you find online at real estate broker sites like Zillow and Redfin is typically provided by an MLS database — but you’re not viewing the database itself.

What homebuyers should know about the MLS

If you’re in the market to buy a home, using the information a broker posts from an MLS can help you learn a lot about houses for sale, including prices, property age, number of bathrooms and bedrooms, and photos of the properties. Each broker may have its own way of presenting this information.

What’s not presented to the public? Information that should be protected for the seller’s privacy such as direct contact information or times that a property is left vacant for viewing.

Brokerages like Redfin and Zillow may be members of many MLSs. They can provide listings to the public from any database they have access to. These brokerages may not be a member of all MLSs, though, so you may see some listings through your agent that aren’t on Zillow, for example.

What home sellers should know about the MLS

If you’re selling your home, there’s one big reason to have your home added to an MLS database: It’s a great way to get your home in front of more buyers.

But to do that, you’ll typically need to work with a real estate agent who’s a member of an MLS. Private individuals generally can’t list their own home — it has to be entered into the MLS by a real estate agent.

There is an exception: In certain states, you can pay a third party a flat fee to register your house for sale (sometimes known as a “fee-for-service” listing) without going through a real estate agent and paying the commission, which could be thousands of dollars.

According to the Department of Justice, the difference between an agent listing your home for sale and the flat-fee listing can be in the thousands of dollars, with the flat-fee listing being the more affordable option.

Sellers don’t have to have their home listed for sale through an MLS. Another option is to opt for a pocket listing or off-market real estate listing, meaning you’re offering your home for sale privately and only to a few people. In these cases, instead of listing the home on a real estate agent or broker’s site, the home is offered offline. This type of option may be a consideration if you are testing a sale price or if you have privacy concerns.

Is the MLS private?

Listings on the MLS can contain information that you might not be comfortable sharing if privacy is a concern. MLS databases list details such as when your home is empty for showings, though this information is available only to real estate agents.

The listings also show your address, pictures of the outside and inside of your home and financial details like your home’s listing price. If you’re worried, you may be able to request your real estate agent to hide your listing from public-facing websites like Zillow so that it’s only viewable to serious buyers working with an agent.

People who are extremely concerned, such as celebrities or high-net-worth individuals, sometimes even avoid listing their home on the MLS entirely and find other ways to connect with a buyer.

What’s next?

An MLS is a tool that real estate agents use to connect home buyers and sellers more easily. If you’re house hunting, you can view MLS information on homes for sale through real estate websites or work with an agent.

If you’re a seller, you may also find it helpful to use a good real estate agent to help you through the process of listing your home for sale. Like any other aspect of buying or selling a home, it makes sense to shop around for an agent with the right level of experience and expertise to help you get to closing day.