Seller Closing Costs
One of the larger costs at settlement paid the seller is the commission for the REALTORS® involved in the transaction. Commissions are negotiable and vary somewhat by market, but a typical commission is 6 percent of the sales price of the home split between the listing agent and the buyer's agent. For a home that sells for $350,000, the commission would come to $21,000.
Other fees paid for by the seller may include:
1. Loan payoff costs. Your loan payoff will often be a little higher than the remaining balance on your loan because of prorated interest. In some
cases, you may have to pay a prepayment penalty for paying off your loan before the end of the term. If you have a home equity loan or line of credit,
this must be paid in full at settlement as well.
2. Transfer taxes or recording fees. These are the taxes imposed by our state or local government to transfer the title from one owner to another.
3. Title insurance fees. Sellers typically pay the owner's title insurance premium.
4. Attorney fees. Sellers will incur this cost if you decide to have your own attorney represent you at the settlement. You will also have an attorney
fee for the preparation of the warranty deed for the sale of your home.
5. Liens or judgements against the property.
6. Termite inspection and/or remediation. Sellers typically pay for the termite inspection and/or remediation on the property, unless stated differently in the purchase agreement.
7. Unpaid homeowner association dues, if applicable.
8. Prorated property taxes up to the settlement date.
9. Closing Fee. Sellers and buyers typically split the closing fee that is charged by the place of settlement (ex: title company, lender)
One of the larger costs at settlement paid the seller is the commission for the REALTORS® involved in the transaction. Commissions are negotiable and vary somewhat by market, but a typical commission is 6 percent of the sales price of the home split between the listing agent and the buyer's agent. For a home that sells for $350,000, the commission would come to $21,000.
Other fees paid for by the seller may include:
1. Loan payoff costs. Your loan payoff will often be a little higher than the remaining balance on your loan because of prorated interest. In some
cases, you may have to pay a prepayment penalty for paying off your loan before the end of the term. If you have a home equity loan or line of credit,
this must be paid in full at settlement as well.
2. Transfer taxes or recording fees. These are the taxes imposed by our state or local government to transfer the title from one owner to another.
3. Title insurance fees. Sellers typically pay the owner's title insurance premium.
4. Attorney fees. Sellers will incur this cost if you decide to have your own attorney represent you at the settlement. You will also have an attorney
fee for the preparation of the warranty deed for the sale of your home.
5. Liens or judgements against the property.
6. Termite inspection and/or remediation. Sellers typically pay for the termite inspection and/or remediation on the property, unless stated differently in the purchase agreement.
7. Unpaid homeowner association dues, if applicable.
8. Prorated property taxes up to the settlement date.
9. Closing Fee. Sellers and buyers typically split the closing fee that is charged by the place of settlement (ex: title company, lender)