Seller Closing Costs
The buyer and the seller have closing costs to pay at the close of escrow. The seller closing costs are deducted from the purchase price by the title company.
Seller closing costs vary according to where you live, but as the seller you can expect to pay anywhere from 6 percent to 10 percent of the home’s sales price at settlement. This won’t be cash out of your pocket, rather it will be deducted from the profit on your home — unless you are selling with very low equity. In which case, you may need to bring a little cash to the table.
Common closing costs
- Realtors’ commissions. One of the largest costs you’ll pay. The standard commission is 6 percent, split between your agent and the buyer’s agent.
- Recording fees or transfer taxes. There are state and local fees for the transfer of the title from one owner to another. They can vary dramatically from state to state, ranging from 0.1 percent to over 2 percent.
- Title insurance. This protects the lender and the buyer from claims against the property. Buyers usually pay the lender’s title insurance.
- Attorneys fees. In some markets, both buyers and sellers have their own attorneys. In others, one settlement attorney conducts the transaction.
- Prorated property taxes and HOA fees. Like mortgage interest, property taxes and homeowners association dues must be paid up to the settlement date.
- Loan Payoff Costs–Payment of existing loan
- Prepayment penalties
- Unpaid HOA dues and HOA transfer fee
- Buyer credits