Your Home Sold Guaranteed Realty — The Nathan Clark Team

Learn The 6 Typical Closing Costs For The Seller

Wondering what the typical closing costs for the seller are in a real estate transaction? While it’s true that home buyers pay the most closing costs, this doesn’t mean home sellers are completely off the hook. 

If you don’t take into consideration what your closing costs are ahead of time, you run the risk of eating into your home sale profit and not earning as much as you thought you would. In this post, our team at Your Home Sold Guaranteed Realty – The Nathan Clark Team will explain six of the typical closing costs for the seller. 

1. Realtor Commission

One of the typical closing costs for home sellers are realtor commission fees. These fees make up the most significant expense for sellers. This is because they traditionally pay for both their own realtor’s commission as well as that of the buyer’s agent. 

In total, this cost can be as much as five or six percent of the home’s purchase price– three percent for each agent. Of course, the exact price will depend on the realtors’ exact commission rates.

The commission rate is an avoidable closing cost in the home-selling process. Even if you choose to list your home as for sale by owner, you’ll still have to pay the buyer’s agent’s commission.

2. Title Insurance

Another one of the most typical closing costs for home sellers is the title insurance fee. Title insurance protects the home buyer in the event that the title search on your property turns up an unexpected claim of ownership.

Title insurance is only a one-time payment, and it ranges from 0.5% to 1% of the home’s sale price.

3. Taxes and HOA Fees

As the home seller, you’ll have to pay a couple of different taxes on your home. First, it’s your responsibility to make sure all property taxes are paid up to the closing date of the transaction. After the date of the sale, the home buyer will take care of the property taxes from that point forward. If you live in an HOA, you’ll also need to keep up to date on homeowner’s association fees.

Another tax you’ll have to pay is the deed transfer tax. This is a tax that your state or local jurisdiction may charge when the ownership of a property is transferred. The amount often depends on the value of the property.

Some states charge a flat rate, while others charge a percentage of the sale price. In addition, some states split the cost of the transfer tax between the buyer and seller.

4. Remaining Mortgage Balance

Aside from property taxes and HOA fees, you’ll also have to pay off what’s left of your mortgage when you sell your home. You’ll use the buyer’s funds for this, and the money left over will go toward the other typical closing costs for the seller.

To pay off your mortgage, you’ll need to contact your lender and get a payoff statement. This statement factors in the right amount of interest along with the rest of your principal. It’s a good idea to get a second statement closer to your closing date to make sure you’re getting an accurate figure. 

5. Seller Concessions

Seller concessions are used as a way to sweeten the deal for the buyer so that the transaction closes faster. They’re more likely to come up during a buyer’s market when the home buyer has more leverage during negotiations.

Concessions can include the cost of repairs that come up during the home inspection, loan origination fees, appraisal fees, and any other fees associated with the home buyer’s expenses. 

It’s important to note that lenders place limits on how many seller concessions the home buyer can ask for. This typically ranges anywhere from three to nine percent of the sale price, depending on the size of the buyer’s loan.

6. Attorney Fees

An optional cost you may encounter while selling your home is attorney fees. You’ll only have to pay this if a legal dispute arises or if you choose to have an attorney present at the closing date.

Of course, you’ll only be responsible for paying your own attorney, but you may consider paying the buyer’s attorney fees as a concession.

Work With Us to Sell a Home in New England

The typical closing costs for the seller can quickly add up and cut into your potential profits. For this reason, it’s crucial to have an experienced realtor on your side to help you get the best deal possible and sell your home fast.

If you’re looking to sell a home in New England, then our award-winning team at Your Home Sold Guaranteed Realty – The Nathan Clark Team is the best choice for you. Our professional realtors have developed a reputation as the top real estate team in New England for a reason.

On average, we sell homes 30% faster than our competitors and for almost eight percent more. During our 21 years in business, we’ve helped thousands of satisfied clients get the best price for their homes, and we know we can do the same for you.

On top of that, we offer a Guaranteed Home Sale Program that makes the selling process as risk-free as possible.

To learn more about our guarantees or what it’s like working with us to sell a home, give us a call at 401-288-3557 or fill out the form below for more information.

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Nathan Clark $ 39 Cedar Swamp Rd, Smithfield RI 02917 401-288-3557

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#1 Real Estate Team in Rhode Island
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401-288-3557