When you sell your home for a profit, you are probably looking forward to receiving a nice check at settlement. But, you should keep in mind that there are closing costs for sellers that will be deducted from the final proceeds of the sale. In today’s post, I’m going to review some of those costs so you are not surprised when you sit down at the table on settlement day.
Commission
The largest seller cost at settlement is typically the realtors’ commission. Standard commission is typically 5-6% and is often split between your agent and the buyer’s agent.
Loan Payoff
If you owe a balance on a loan for the home you are selling that will be deducted from your final proceeds. Keep in mind that the amount due to your current lender will be slightly higher than the remaining balance on your loan because of prorated interest.
Transfer Taxes and Recording Fees
When you sell your home, your local government will charge fees to transfer title and record your deed and deed of trust. Those fees vary from county to county and are typically a percentage of the sale price. You can find more information about Anne Arundel recordation and transfer tax fees here.
Property Taxes
As a seller you will have to pay the balance of your property taxes, if you haven’t done so already.
Home Inspection Repairs
After buyers perform the home inspection, they will often request repairs be made by you, the seller. If you agree to make some or all of the repairs, you are responsible for those expenses.
HOA/Condo Resale Packages
If your home is located in a community with mandatory home owners association and/or condominium dues, then you will be required (by law) to furnish the resale package to the buyer. This can cost up to $200.
Keep in mind that most title companies will send your realtor and you a copy of the estimate costs prior to your closing date. You will rarely walk into a settlement without knowing exactly what you are paying and how much you will receive as final proceeds from the sale of your home.
Navigating the process of selling your home can be confusing, but I would be happy to help you through the process. Just contact me if you have any questions about selling or home or are ready to put your house on the marker.
