Home sellers often wonder what their bottom line will be when selling their home? There is so much involved in real estate transactions and this is just another one of those areas sellers need guidance with.
Sellers typically have a very short list of expenses at close compared to buyers. Your Realtor should always run an estimate of closing costs when a home gets listed so sellers have a rough idea of what expenses will deducted at closing. The title company and your agent should be prepared to explain the breakdown and to walk you through understanding the closing costs worksheet. In fact, a few days before closing you should receive a copy of the final numbers from your agent and you need to make sure and look it over, if you have any question bring them up before closing. The form you will be looking for is the U.S. Department of Housing and Urban Development Settlement Statement otherwise known as the HUD - 1 form.
These are estimates based on what a seller might typically see, this does not mean there will not be other incidental costs on your particular property, every transaction is different.
Costs one can expect to see on their HUD-1 at settlement:
- Commissions - the negotiated rate you agreed to when your home was
listed. When it sells you multiply that rate by the sale price. - In PA there is a 2% transfer tax, typically split by buyers and sellers. You can count on paying 1% to the Sate.
- Preparation of Deed- somewhere around $250.00
- Miscellaneous fees- Overnight fees for documents, settlement fees, notary fee usually totals no more then $200.00 all together
- Final utility and taxes owed can be escrowed at close- will depend on your specific situation.
- Any liens on the property.
For example at a recent closing the seller saw this breakdown:
Home sold for 230,000
Seller paid
- $10,350 commissions
- $50.00 Document Prep Fee
- $12.00 Notary Fee
- $2300 Transfer Tax
- $294 Bethlehem Township Tax
- $447 Northampton County Tax
- Home Warranty $420.00
- Total was $14,234 plus what seller owed on his mortgage
If you have any questions on costs related to selling a residence here in Lehigh County or Northampton County of Pennsylvania feel free to give us a ring, we are always happy to help.
Jill & Ron Fuhrer
Prudential Patt, White
484-241-5186
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