Seller's Closing Costs
Closing costs represent a significant expense for the seller. It's important to know these costs so you are prepared at the closing..
The total cost of selling a home can be considerable. The expenses involved in completing the sale - known as closing costs - represent a meaningful percentage of the proceeds.
Real Estate Commission
Your agent will be paid out of the closing proceeds. The commission is typically 5-6 percent of the sale price.
Realty Transfer Fee or Tax
In many areas the transfer of real estate is subject to a fee or tax, which is usually paid by the seller. The amount varies considerably with location, but can equal several percent of the sale price..
Allowances for Deficiencies
It is fairly common to provide the buyer a credit to account for problems and deficiencies that arise from inspections of the property. Any amounts agreed upon will be deducted from the seller's proceeds at closing. Minor repairs are often handled in this manner.
Mortgage Cancellation Costs
There is sometimes a small fee or charge for cancelling your existing mortgage and filing the required paperwork.
Adjustments with Buyer
The seller is credited for property tax payments that cover the period after the closing. Additionally, the seller receives a credit for any similar items, such as fuel oil in the tank. If the seller is delinquent in property taxes, the amount required to bring the bill current would be deducted from the closing proceeds.
Miscellaneous Fees
There are a number of small fees related to notarizing and filing documents. These fees vary, but are usually no more than $100. Generally, attorney or escrow company fees are also paid at the closing. These amounts vary considerably with location.
