Seller Closing Costs: Here’s What You Need to Know

When selling your home, there are costs that both buyers and sellers will have to pay at closing. For Seller’s the national average is 8-10% of the home’s sales price (not including any mortgage payoffs or liens related to the property).

The real estate commission are split between the listing and buyer agents, and, in some cases, the sellers may also include buyers’ closing costs which can total 2-3% of the sales price. 

What fees do sellers pay at closing?

The most common closing costs that sellers face at closing, along with how much each typically costs are listed below:

Even closing costs will vary between cash or loans being offered on your home. It includes seller closing costs, deed stamps, owner’s title insurance, HOA fees and prorated taxes. Some of the variations may include survey’s or a WDO inspection for a VA loan. Let’s break down what these are

• Transfer taxes and recording fees

Transfer taxes and recording fees are sometimes called deed stamps or documentary fees. Simply put these are costs set by county and municipal governments associated with transferring the property’s legal ownership from you the owner to the buyer.

Who pays and how much it costs varies between counties, type of loan, and negotiated contract contingencies.

• Owner’s title insurance

An Owner’s title insurance protects the buyer against unforeseen legal issues with the home’s title caused by a previous owner, such as delinquent property taxes or outstanding liens. This insurance ensures a clean title for the buyer. It is relatively inexpensive for the seller.

• Property taxes

Sellers cover any unpaid property taxes and a prorated portion of the year in which you owned the property. This includes any special assessments and CDD fee’s that maybe associated with your home.

• Homeowners association fees

If you belong to a homeowners association (HOA), you may have to pay prorated membership dues when you close on the sale.  In addition, HOA estoppel fee is included in your closing costs. This is a fee that has the HOA stating in writing to the Title company that you as the homeowner do not have any violations assessed and that you are up to date on your association dues.

• Settlement fees

Settlement fees are a variety of service charges associated with the sale of the property from the title company that is preparing the documents on your closing and will disburse the funds on your behalf.

• Seller concessions

Seller concessions are Buyer-requested concessions that may include items such as a home warranty or even may include closing costs for the buyer.

Closing cost responsibilities are negotiable and offering to help the buyer cover their closing costs can be a valuable bargaining chip. While sellers can cover their closing fees out of the sale proceeds, buyers must pay theirs out of pocket. Offering to cover a portion of the buyer’s fees — which typically cost 2–3% of the home price — makes the initial purchase more affordable, which may help you negotiate a higher sale price.

• Real estate commission

This fee covers both the buyer’s and seller’s agents. Sellers are responsible for covering both agents’ fees in most cases.

• Mortgage or loan payoff

A seller net sheet may or may not include any mortgages or liens to be repaid at closing. It’s hard to come up with a precise number if you don’t have a closing date set yet.

• Capital gains tax

You may or may not owe tax on your home sale. This is not included on Seller’s Net Sheet. It is always advisable to discuss even an estimated net sheet with a Tax Professional to determine if your home sale will be affected by Capital gains taxes.

Get an estimate on your Seller Closing Costs by downloading our Seller’s Net Sheet today!

East Pasco Living Team

We are a collaborative team with a vision to put our years of experience working and living in East Pasco to work for you!  We strive to build long-term relationships and give you the individualized attention you deserve. Let us put our combined decades of experience to work for you. 

Carla Goddard | East Pasco Living Team Lead

Graduate, REALTOR® Institute | Residential Specialist | BHHS-Certified New Home Specialist | Certified National Home Specialist – Residential Construction Certified (CNHS-RCC) | NHCB Certified New Homes Co-Broker |BHHS-Certified eCertified® Specialist | BHHS-Certified rCertifiedSM Referral and Relocation Specialist | Tampa Bay Builder Services Manager

Berkshire Hathaway Home Services

📧email: carla@eastpascoliving.com

📲text/call 813.716.4498