Selling a Home… Closing Costs

      HOW MUCH WILL I “NET” ON MY SALE – FOR SELLERS

Determining how much you will “net” once you sell your home can certainly be helpful when calculating how much you can invest in your new home. Below are costs typically paid by Sellers in our area.

Realtor’s Commission:  Typically 5% – 7% plus $325 of the purchase price. Please keep in mind that ½ of this amount is offered to the Buyer’s Agent to compensate him/her for bringing you the buyer. The other ½ is shared between your listing agent and his/her company.

Transfer Taxes: 1% of Purchase Price in most areas

Deed Preparation:  Sellers must provide a new deed – the closing company charges approximately $150 to do this for you.

Settlement Fee:  Generally $195.

Lien Letter/Tax Cert Fee:  To certify that there are no liens on the Property– approximately $115.

Notary Fee:  approximately $10 – $15.

Property Taxes:  Will be pro-rated between buyer and seller as of the closing date. You will pay for the days you have owned the property. If you have already paid the taxes, you will receive a reimbursement from the buyer for their share. If the buyer will be paying the taxes at or after the closing, you will pay the buyer your share based on the number of days that you have owned the home. The closing company makes these calculations.

Water/Sewer:  Because water/sewer bills can become liens on a property, you will pay your final water & sewer bills at closing.

Overnight Fees: The fee for overnight postal servicing of documents if you are not attending the closing — approximately $30 – $50.

Wire fee:  If you have your proceeds wired into a bank account rather than accepting a check at closing — approximately $20.

Home Warranty:  Your buyer will most likely request that you provide a one year home warranty on the home for them — basic package cost $475.

In addition to these costs, when you sell your home you should also expect to pay:

• All amounts outstanding on any loans you have taken against the home.
• The fee to obtain an occupancy permit and/or resale certificate, if required by your municipality/ homeowners’ association.
• The plumber’s bill to provide a dye test if required by your municipality.
• The costs associated with getting your home “ready” to sell.
• The costs associated with having your home cleaned after you move out, if you don’t want to do it yourself.
• The costs associated with moving your “stuff.”
• The costs associated with hauling away “stuff” that neither you nor the buyer want that the garbage hauler won’t take, such as old tires, old basement refrigerators,…

These are estimates only and may be higher or lower depending on the service providers involved in the transaction and the municipality your property is located in. They are provided simply to allow for an estimate of seller proceeds. Consult your real estate professional for a more accurate estimate.