Every state, county and city has different closing costs that apply for buyers and sellers. In Springfield Missouri, for the seller, some expenses will be fixed while others depend on the selling price. Below, is a summary of the sellers most common closing fees.
Closing Fee: In our market, typically the seller chooses where they close, usually with a local title company. The title search fee ranges from $150 to $200 depends on the type of closing. If there is a 1031 Tax Exchange, the closing fee might be higher.
Repair Items: Contracts used by the local Springfield Missouri MLS, allow the buyer to conduct any inspections they choose at their own expense. The items found which are in need of immediate repair will typically be requested to be negotiated between buyer and seller. If wood destroying insects are found (especially termites), a treatment will be expected at the seller's expense. The cost of termite treatment depends on the amount of damage and repair required.
Home Warranty: Home warranty's can be offered by the seller when the home is marketed. If a warranty is not offered by a seller, the buyer can purchase one at closing. These range from $414 to $500 and cover certain items for your buyers during their first year of ownership.
Title Search: The seller is required to do a title search to insure the title is free of any unforeseen liens. The cost of this usually ranges from $150 to $300.
Mortgage Payoff: Mortgages, home equity lines of credit or second mortgages with be required to be paid off at closing.
Miscellaneous: There are some smaller amounts that you'll be expected to pay as well. Overnight delivery fee for sending in the final payoff to your lender, current year's real estate taxes, well and septic preparation, home owner's association in your community, These amounts will be pro-rated to the day of closing.
Association Fees: Depending on the due date for association fees, some sellers may be elgible for refunds. If they have paid the first of the year and close in the middle, they could earn a refund. Of course, if they are delinquent, the title company will require they be paid at closing.
Real Estate Commission: The commission is negotiated when the home is marketed. Commission is usually based on the selling price and paid by the seller.
Whether the agent is charging you very little for a small list of services or providing a full service experience to increase your odds of selling, the best practice is to find a local expert with great references and experience who you can trust to employ the right strategies that will sell your home for the most money in the shortest time frame with the least hassle.
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I wrote this article back in 2006 and thought is worth sharing.
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