Sellers usually hire real estate attorneys to review the sales contract. states and the District of Columbia, it is mandatory for an attorney to be a part of the deal closure. Be an FSBO (For Sale by Owner) seller and list your home with a Flat Fee MLS Service, like, to save more! 2. You can avoid paying hefty commissions by listing your property for a flat fee. Thus, you can expect to pay a realtor commission that ranges from 4% to 6% of the sales price (2% to 3% each). In the U.S., it is customary for the seller to pay a real estate agent commission to the listing agent as well as the buyer’s agent. A mortgage prepayment penalty can amount to 2% of the outstanding balance. This includes interest accrued from the last payment to the day of closing and any penalty the lender might charge for prepayment of the mortgage.Ĭontact your lender and discuss the requirements to pay off the mortgage to get the overall details of your closing costs. You’ll have to pay off any remaining balance of the mortgage on your property with the proceeds of your home sale at closing. Mortgage payoff will most likely be one of the biggest items on your list of closing costs for the seller. If there are any dues, you must clear them at closing. The title company usually checks for unpaid bills and utility liens. You must pay for utilities, like water, gas, electricity, etc., till the date of purchase of the house. The cost of an owner’s title insurance policy generally comes up to 0.5% of the property value. Additionally, title insurance takes care of any back taxes, liens, ownership clauses, etc. Owner’s Title InsuranceĪn owner’s title insurance policy protects the buyer against discrepancies related to the ownership of the property or false documentation. On average, a municipal lien search costs $200. A municipal lien search can complement a title search as it offers additional information about open or expired permits.Īn open or expired permit can be a thorn in the side for both you and the buyer, as it can lead to further expenses and delays in the sale. Municipal Lien SearchĪ municipal lien search can help you uncover any unrecorded liens, code violations, permits, taxes, and utility bills, associated with the property. The title search fee for a standard single-family home may range from $100-$250. It can help discover any liens or claims on the property that even you may have been unaware of. The seller typically pays for a title search. To do this, a title company examines public records like deeds, tax liens, land records, court judgments, etc. Title SearchĪ title search is done to determine a property’s legal ownership. The monthly cost of a home warranty usually ranges between $25-$50, depending on the plan you choose. You may offer a home warranty to make the property more desirable for buyers. Home Warranty FeeĪ home warranty covers the maintenance cost of the devices and appliances in the house for a limited time period. The average cost of a home inspection in the U.S. You can opt for a home inspection before the property is listed on the market (pre-inspection) or just before the closing. Typically, a buyer agent or the buyer schedules a home inspection. Home Inspection Fee: $340Ī home inspection pinpoints any major defects and issues that persist in the house, like plumbing issues, termites, mold, etc. The remaining 3%-4% includes home inspection fee, HOA fee, estoppel fee, etc. The biggest closing cost (5%-6%) the seller has to pay is the real estate agent commission. The estimated home selling costs range from 8% to 10% of the final sale price of the house, not including the mortgage payoff. What is Included in Closing Costs for Seller? They are necessary to finalize the real estate transaction and transfer the ownership of the house.Īlso known as settlement costs, closing costs vary based on the property’s market value, local and property taxes by state, type of loan, and other customary charges.ĭeveloping an understanding of your house selling fees can help you find the right price for your property and make the closing process easier. What are Closing Costs?Ĭlosing costs are a set of expenses that must be paid as a part of the closing process. Not knowing these costs could burn a hole in your pocket on the day of closing.Īnd by then, it will probably be too late to negotiate who will pay closing costs. Realtor fees, title insurance, taxes, and attorney fees are included in seller closing costs. Before celebrating the profits you’ve made from selling your house, you should calculate the fees you will pay. From Miami to Seattle, home sellers pay 5% to 10% of the home sale price at closing.
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