you put your house on the market, your real estate agent
will likely provide you with a seller net sheet, which
outlines all the fees you’ll owe as part of the
transaction and estimates of closing costs and
commissions. In total these typically amount to about 10
percent of the sale price of the home.
vary from state to state, but read on for a general
overview of costs to expect during the home selling
real estate agent who represents you for a transaction
is entitled to commissions under state law. The seller’s
agent splits the commission with the buyer’s agent.
5-7% of home's sale price
you sell your house, you need to pay off the mortgage.
Any remaining balance gets deducted from the sale price.
also a recording service fee for recording the
satisfaction of the mortgage, which is usually about
$75," says Jen Geisinger, a Realtor with Luke Team
Real Estate in Maple Grove, Minnesota.
out if your loan has a prepayment penalty, and factor
that in to your costs.
fee might apply if you need a courier to deliver the
loan payoff to each lender.
seller is responsible for paying off any outstanding
property taxes owed on the property.
most states, property owners pay these in arrears, or
for the previous year. Sellers also pay for any
estimated prorated taxes. For example, if the sale
closes on June 15, the seller will have to pay an
estimated tax amount for use of the property from
January 1 to June 15.
fee or brokerage fee
your agent isn't a broker, he or she works through a
broker’s office, which can charge a fee at closing for
processing the transaction and keeping all documents
related to the sale on file for at least seven years for
tax audit purposes, says Melissa Adams, a Realtor with
Re/Max Advance Realty in Miami. The agent must disclose
this fee upfront, which is negotiable in some cases.
and recording fees
title company contracts attorneys to write a deed, the
legal document that transfers a title to a piece of
property. The county then records this document with
county property records to formalize the transfer.
Sellers pay for both of these fees, which can range from
around $100 to $250 or more.
Varies by state
vary from municipality to municipality, but in general,
property transfer taxes can range from nothing to $10
per $1,000 of the sales price, or you may be assessed a
and closing fee
title company may charge a fee as part of the escrow
process, which involves holding the buyer’s money and
the seller’s signed deed until each party has done all
necessary steps to complete the transaction at closing.
depends on the closing company, but the seller typically
pays for it," Geisinger says.
your property or condo unit has a homeowners
association, the seller also has to pay for an estoppel
letter, the association’s official accounting of any
dues the property owner has outstanding.
entice a buyer into entering a contract in a competitive
buyers’ market, a seller can offer to pay for all or a
portion of the buyer’s closing costs. While not
necessary, it could help seal a deal.
buyer can ask the seller to pay for all or part of the
home inspector’s repairs after getting a home
inspection report as a contingency for purchasing the