Selling a home can be a great opportunity to upsize, downsize, or just move to a new dream location. It can also be one full of anxiety.
One way to negate that anxiety is to eliminate any surprises along the way, including those of closing costs.
Closing costs for sellers are any fees or other charges that are beyond the purchase price of the property and are due at the end of the transaction. Sellers have a specific set of closing costs to be aware of.
Below is a guide to the most common closing costs for sellers.
Filing Fees and Taxes
There are several types of fees and taxes to be paid when selling a property. Sellers are responsible for paying any transfer taxes, recording fees, and property taxes.
It is also common to pay attorney fees for help filing this paperwork. And if it is a private residence, there may be homeowner association fees to be paid as well.
Home Title Insurance
Most lenders require a title insurance policy and the seller will need to be prepared to pay this.
This policy is used to verify ownership and protects the lender against any unexpected ownership claims on the property.
In most transactions, the buyer and seller will each pay half of the total escrow fee. This fee, sometimes called a closing or settlement fee, covers the services provided by the title company.
Usually, the escrow charges will be around 1-2% of the sale, but these can vary depending on the services provided and how complex the sale is.
Real Estate Agent Fees
When budgeting for your selling closing costs, the real estate agent commissions should be at the top of the list. This is generally the most significant of the closing costs.
While it can vary, and be negotiated, the typical real estate agent commission is around 6 percent of the property’s sale price. So if you are selling a $300,000 home, be prepared to pay $18,000 in commission fees alone.
A quality real estate agent is worth the money. They can guide you through the selling process steps from beginning to end.
Seller’s Concessions Fees and Other Closing Costs for Sellers
Sometimes to help the selling process, especially in a ‘buyer’s market’, a seller will agree to pay additional closing costs. This is referred to as the seller’s concession.
One common concession fee is for the seller to pay for the home inspection, and pay for any necessary repairs found from that property inspection.
Closing Without Sticker Shock
Selling a property will carry some costs, but with a little research and preparation, you don’t have to be taken by surprise by the closing costs for sellers.
Knowing your closing costs can help you budget for the right price for your property.
For the best professional help in selling your property in the Montebello, California area, be sure to contact me. I have the experience and expertise to guide you through a smooth sale.