What Are Closing Costs When Selling A Home?
Some sellers might not think about the costs involved in selling their home. Here is a breakdown of some of the costs you might expect to pay.
In the beginning before you sign the contract to sell your home with a real estate agent he or she will provide you with a estimated closing statement which will give you an idea of all the costs involved. Once you have an offer and you open escrow, escrow will then provide you with another estimated closing cost breakdown called the HUD, which will reflect the purchase price offered by the buyer. The real estate agent estimate cost is based on the sale price you agreed on and at the time of signing the listing contract.
What is included in the sellers estimated closing costs?
- Purchase Price Offered by Buyer
- Present Mortgage Payoff
- City Transfer Tax
- County Transfer Tax
- Recording Fees
- Homeowner's Warranty
- Title Fees
- Termite Fees
- Escrow Fees
- Natural hazard Report Fees
- Listing Broker Commission Fees
- Selling Broker Commission Fees
- Cushion or Buffer Fees
- HOA Transfer Fees (If Applicable)
- Estimated Equity to Seller (Your Final Profit)
Most of the city and county fees are standard. Home Warranty are around $400.
Title and escrow fees differ slightly by a couple of hundred dollars.
Termite fees depend on if work needs to be done and in some cases there is no fee because there is no termites or damage.
Natural Hazard report is around $100.
Then you have your listing real estate commission fees which could range from 5-7% total which obviously is your biggest expense in selling a home.
Example:
On a home with a purchase price offer of $320,000, it could cost you a total of $22,000.
The bottom line is if your thinking about selling your home make
sure you count the total cost.
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