CLOSING COSTS WHEN SELLING A HOUSE

Buyers and sellers have closing costs associated with the transaction. Therefore, it is important, before placing the property for sale, to have an estimate of the expenses that you will have to pay in order to finally be able to determine the amount you can count on once the transaction is finalized Most common closing costs for the seller:

1. Mortgage Balance

The balance of the existing loan, the balance of the second mortgage and lines of credit on the home.

2. Loan Fee Due

Administrative fee charged by the lender to pay off the loan.

3. Debt Release

Money owed to contractors and / or by court judgments or property taxes. These amounts must be paid before closing.

4. Penalty for Early Payment

Some loans have a penalty for early payment of the debt.

5. Registration Fees

Fees to pay to document that debts have been paid in full.

6. Commissions

The fees paid to the real estate brokers involved in the transaction. Generally 6% of the sale price and paid in full by the seller.

7. Notary Fees

The fees charged by the notary to verify the identity of the signatories of the document.

8. Trust Costs

Escrow agents receive money from the lender, pay all costs, collect deposits, and distribute proceeds to the lender / seller.

9. Title Search Costs

Proof that the seller has the legal right to sell the home. Title companies search public records and produce an insurance commitment that certifies that the seller owns the home and indicates the details of any liens or other rights that affect the title to the home.

10. Seller's Concessions

Amount that the seller agrees to give in order to help the buyer pay their closing costs.

11. Repairs

Work that the seller must complete (if applicable) prior to the sale, either as a result of the buyer's negotiation or as a condition of the lender.

12. Home Warranty

Home buyer's first year protection plan.

13. Termite Warranty

Documentation used in some parts of the country indicating that the home is free from termites. How to estimate closing costs? For practical purposes, the closing costs for the seller can be estimated as follows: • 1.5% on the sale price, PLUS • Property taxes accrued to date, PLUS • Mortgages and / or lines of credit that exist on the property, PLUS • Commissions (generally 6% of the sale price)