Cost of Selling a House | Lutherville Real Estate | Lutherville, MD 21093
by Helene Kelbaugh of Keller Williams Realty in Baltimore
If you are reviewing closing costs on a HUD-1 this is an exciting time for you! This means you have successfully made it to the settlement table and are closing the sale on your Lutherville home for sale. While closing costs should be discussed prior to listing the home and expectations set prior to settling on the home, it's important to understand or have some type of idea of what closing costs are.
What are closing costs?
Closing costs are fees or expenses incurred while closing on the sale of a home. The HUD-1 is a federal document that the closing costs are listed and itemized in detail. Both buyers and sellers incur closing costs that are apart of the transaction.
***Closing costs are unique to the seller and location of home being sold. Talk to a local REALTOR for specifics.
What do I pay as a seller?
Closing costs can be unique and differ seller to seller. However there are some closing costs that are typical of a sale of a home:
- Brokerage Commission - Fee paid to brokerage for selling the home.
- Additional Brokerage Commission - Administrative Brokerage processing fee for paperwork processing and additional tasks.
- Recorded release of mortgage - For a seller you may have a mortgage to pay off. Or you may have a (heloc) Home Equity Line of Credit or you may need to file for a lien release for which there is a fee.
- Recordation and Transfer Taxes - The State of Maryland Charges the buyer and seller for recording and transferring the deed out of your name. Traditionally these fees are split between buyer and seller, but can be re-negotiated on the contract of sale.
- Capital-Gains Tax - Yes, Uncle Sam could also be getting a check. It's best to speak with your Accountant to confirm the details.
- Notary Fees - The Notary is becoming more and more of a requirement. Depending upon the document, a Notary may be required.
- Attorneys Fees - If you elect to hire an Attorney, this will be an additional expense.
- Condo/Hoa Fee - If you are selling a condo or a home in a home owners association community, you will need to pay for the documents to be provided to the buyer for review.
- Other Credits to buyer - While these are not all of the possible fees, these give some idea of what to expect. Other items that are sometimes paid for by the seller are things like Home Warranties and any other items that were negotiated as per the contract.
***Not all closing costs are necessarily the exact same for every seller. Closing costs are unique to the seller and location of home being sold. Talk to a local REALTOR for specifics.
Am I required to pay the buyers closing cost?The buyer has their own set of closing cost expenses. Lender fees, inspections, appraisal, credit report, survey, title insurance just to name a few. The closing costs to a buyer are also unique to the buyers. The buyer can ask for closing assistance from the seller. The maximum amount of closing cost help the buyer can ask for will vary depending on their type of financing and if there are any grants or special programs being used for the purchase. This will be discussed with the lender during the offer and negotiation period to confirm it's an allowable amount being requested.
With that being said, when the buyer asks for closing help, it's all negotiable. Talk to your REALTOR to discuss what the bottom line will be if the closing costs being requested is provided. You can negotiate this requested amount as a seller.
This is just the tip of the iceberg. Each transaction is unique. Speak with your REALTOR for guidance on the cost of selling a house.
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