Seller Closing Cost
What fees should a seller expect at closing. Selling a home is less complicated than buying a home. There are far fewer closing documents for the seller. Below is a description of the typical seller expenses or closing cost at time of closing. AskChristee ‘seller net’ will calculate seller closing cost
1. Real Estate Commission. The total amount of commission due will be expressed as a percent of the sales price and dollar amount payable to each real estate company involved in the transaction. Even though the other real estate company represented the buyer (as agent) you still pay the commission. The closing sheet was show gross commission and disbursement amount to real estate companies.
2. Additional Real Estate Fees. It is not unusual today for real estate firms to charge a fee in addition to the commission. As a seller, you should read your listing agreement, to ascertain if you have agreed to pay anything beyond the sales commission. The additional fee is often referred to as a ‘processing’ fee.
3. Loan Discount Fees. If you have agreed to pay discount fees on behalf of buyer the charge will be expressed as a percent and a dollar amount.
4. Title Company Fees. In most cases, there are not any fees due from seller to the title company. However, this may change from State to State based upon local customs. Your real estate agent should review typical ‘Title’ fees payable by the seller. Items such as doc prep fee, notary fees, copying fees etc. should be carefully reviewed. Typically, the only document the title company will create, on behalf of seller, is the deed and normally this is covered as part of the ‘closing’ fee. The Lender will have furnished all the mortgage related documents to the title company.
5. Transfer Taxes. Your contract will stipulate how these charges are to be shared between the buyer and seller.
6. Recordation Taxes. (AKA documentary stamps) fees are an additional tax based upon the sales price or the new mortgage amount.
7. Miscellaneous Seller Charges. Depending upon the borrower’s loan type, the seller may be obligated to pay for small items such as the pest inspection (all VA mortgages). These items should have been addressed in the purchase agreement.
8. Adjustments. Adjustment for items paid/unpaid by the seller. Most contracts allow for all adjustments to be made as of the date of closing. Typically, water bills and property taxes are subject to adjustment. Depending upon the date you close, there will either be a credit to the buyer or credit to the seller for property taxes. If you have prepaid the property taxes beyond the closing date then you will receive a credit.
9. Payoffs. The title company will collect money to satisfy all liens of record. Additionally, they will collect for condo or HOA fees due. You should review your mortgage payoff statement to determine whether the payoff amount is net of monies in your existing escrow account and how many days interest beyond closing is being collected. Additionally, you should confirm how the mortgage satisfaction is being recorded – either by the Title company or your existing Lender.
10. Seller Concessions. Monies that you have agreed to pay on behalf of buyer will be deducted from the seller. These amounts will include items such as: (a) Seller credit toward buyers’ closing cost and/or (b) any amount agreed upon as offset to repairs.
11. Seller Proceeds. Your net proceeds check will be calculated as: [Sales Price – (closing cost+ concession+ payoffs)]
12. Transfer of Title. Once you’ve signed the deed, you have officially closed on the house. You are no longer the legal owner. Unless you and the buyer have agreed (in writing) to occupancy after closing, the buyer will expect right of possession immediately after closing.
13. Chattel Items. All of the objects, codes, and other home miscellany need to be brought to the closing. Items can include things like all keys, garage door openers, passcodes, or other devices that control appliances around the home. After all, what good is buying a house if you can’t get into it or use the garage!
Here’s a quick checklist for items to give to the new owners:
- Keys to the front door, back door, garage, porch, and backyard.
- Punch codes for gates, fences, door locks, and garage doors.
- Access information for smart locks, thermostats, doorbells, or appliances.
- Any other remotes or devices that control systems of the house.
You can alternatively leave these items on the kitchen counter for when the buyers take possession. Just make sure your agent gives the buyer’s agent a key to enter the house at settlement.
14. Government-issued identification. The closing agent needs to verify that you, in fact, are who you say you are. On the day of closing, bring two forms of identification to be on the safe side. The first must include a photo like a driver’s license or a passport. The other should have your name printed on it (like a social security card, or credit card).