For the last few months, my husband and I have been thinking of selling our home so that we can move closer to our children and grandkids. Fees and taxes for the seller are an additional 2% to 4% of the sale. Escrow deposits -- your lender will probably require you to pre-pay a few months of taxes and insurance to form a "cushion" in your loan's escrow account. Commissions generally run 4-7% of the sale price, and are split between the listing agent and the buyer agent. Comment document.getElementById("comment").setAttribute( "id", "a2857ed744875ada315838398acb1a4c" );document.getElementById("bcd29bbb65").setAttribute( "id", "comment" ); Website is a service of The Alfriend Group, RE/MAX Achievers – 7124 Muirfield Drive, Dublin, OH 43017Phone: 614-395-1776 | Fax: 614-388-6890 | firstname.lastname@example.org, Copyright © 2021 | Information deemed reliable, but not guaranteed. |. Learn More. You will, however, be able to negotiate and shop around for this service. The title / escrow company pays off all the liens, prorates property taxes and insurance costs, orders title insurance, opens escrow, performs a title search to look for liens and to look for ownership, taking in the buyer’s money to purchase the home, and runs all the balance sheets for both sides. Attorney fees -- real estate closings usually involve an attorney for the buyer, seller, or both. I have no idea how to plan out those selling costs or where to send them. Talk with your agent or attorney for information on your specific transaction. Sellers must pay for both their real estate agents and the buyer’s agent’s commission that is typically 6% of the sales price. Typical HUD-1 statements have the buyer paying more line items but the seller pays the bulk of the costs. Not in terms of dollars and cents, but in terms of category of cost and rationale behind who typically pays what. Typically, escrow fees are split 50/50 between both parties. Sellers generally have fewer items to pay than buyers, but that doesn't mean they get off easy. Website is a service of The Alfriend Group, RE/MAX Achievers – 7124 Muirfield Drive, Dublin, OH 43017, Click here to get a personalized approximation of your total Seller Closing Costs, Central Ohio Real Estate Update: December 2020, How to Launch and Run a Business from Home, Your Guide to the Best Budget-Friendly Housewarming Gifts, Home Warranty Plan: $450 – $700 (if part of the purchase contract), Seller Paid Closing Costs: buyers will often ask the sellers to pay for their closing costs; if you agree to this in the purchase contract, it will be notated here, Additional Brokerage (Document Storage) Fees: $200 – $300. Most property taxes are paid in arrears, meaning your 2018 taxes are not due until 2019. This area accounts for the recording fees (usually paid by the buyer), and the transfer taxes owed to the county (typically paid by the seller). Appraisal fees -- an appraisal is required to verify that the sale price of the property is justified. For example, if a seller is asking $200,000 for the home, an offer might be "$195,000, plus 3% of the purchase price toward buyer's closing costs. All rights reserved. Typically, though, closing costs amount to about 3.5% of the sale price of a home, according to Leah Layman, a real estate agent in Augusta, GA. ... As for who pays the closing costs… Likewise, the seller pays for his own real estate attorney, if he has retained one. The miscellaneous portion of the settlement statement includes a list of miscellaneous fees. Access to timely real estate stock ideas and Top Ten recommendations. The payoffs section lists the amounts the Seller owes to pay off any mortgages and/or liens they have on their home. The Buyer generally will pay: Lenders title policy premium, if new loan; Thank you for informing me that there are selling costs that will run about 8 percent of the home’s total value. In the example of an offer of $195,000 plus up to 3% back at closing, this is, Offer a quick close -- sellers are more likely to respond favorably to a purchase offer if a quick close is part of it. These fees are deducted from the sale proceeds, so in most cases, sellers do not have to bring any money to the closing table. Will the Covid 19 Crisis Push Home Values Lower? Real estate has long been the go-to investment for those looking to build long-term wealth for generations. Seller-paid closing costs with a 30-day close may look a lot more attractive than another offer asking for a 60-day close, Make fewer demands -- in a nutshell, the easier your offer seems, the more likely a seller will be willing to give you what you want. 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