Common Closing Costs


When selling a home, it is important to understand that there are various costs associated with closing the sale. Some of these costs are the responsibility of the seller, while others may be negotiated between the buyer and seller. Below are some common closing costs for sellers:


  1. Real estate agent commission: Typically, the largest cost associated with selling a home is the commission paid to the real estate agent(s). The commission is typically a percentage of the sale price, and is split between the listing agent and the buyer’s agent.


  1. Home warranty: In some cases, sellers may choose to offer a home warranty to the buyer as an incentive to purchase the home. The cost of the home warranty is typically paid by the seller.


  1. Title search and title insurance: A title search is performed to ensure that the seller has a clear title to the property, and there are no liens or other encumbrances on the property. Title insurance is also required to protect the buyer in the event that any issues arise with the title.


  1. Transfer taxes: Transfer taxes are taxes that are paid when the title to the property is transferred from the seller to the buyer. The amount of transfer taxes varies by state and county.


  1. Attorney fees: Some states require that an attorney be present at closing to ensure that all legal documents are in order. The seller is responsible for paying their own attorney fees.


  1. Prorated property taxes: Property taxes are typically paid on a bi-annual or annual basis. If the seller has already paid property taxes for the current period, they will be credited for the portion of taxes owed after the sale of the property.


  1. Homeowners association fees: If the property is part of a homeowners association (HOA), the seller may be responsible for paying any outstanding HOA fees or assessments.


It is important to keep in mind that the exact closing costs for sellers may vary depending on the state and local laws, as well as any negotiated agreements between the buyer and seller. As a seller, it is important to work closely with your real estate agent and attorney to understand all of the costs associated with the sale of your home.