Analysis of Common Seller Closing Costs

By Home Bay

You’ve prepared your house, held open houses and found your dream buyer who was already pre-approved for their loan. Inspections are done and repairs are all wrapped. All you need to do now is close on the deal. And if you’re like most sellers, by this point you’ve probably also done some quick mental math on what you expect to walk away with in terms of cash in your pocket.

Closing costs for sellers can be tricky, and if this is your first time selling a house, they may even seem hidden, but you can (and should) be prepared when you come to the table. To be as prepared as possible, you want to make sure you’ve accounted for all the typical closing costs for sellers when you did that math.

How much you’ll make on the sale of your house is a little bit more complicated than just subtracting the mortgage you owe from the sale price you’ll be getting. So you’re not caught off guard, and so you’ll be more confident in the process as you go through it, it pays to understand what closing costs for a seller really amount to.
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Selling Closing Costs Overview

It’s very important to realize that you don’t actually get all the money made on the sale of your house. Seller closing costs include the fees that are paid to both lenders and third parties. Average closing costs for sellers around the country are noted here:

  • $13,500 in costs on a $150,000 sale

  • $19,800 in costs on a $220,000 sale

  • $31,500 in costs on a $350,000 sale

  • $45,000 in costs on a $500,000 sale

  • $67,500 in costs on a $750,000 sale

Analysis of Closing Costs for Seller

A large portion of the cost to sell your home goes toward the commissions that go to agents representing both the buyer and the seller. Keep in mind, as the seller, you are typically responsible for both of the agents’ commissions. By working with HomeBay, you can avoid paying this large chunk of change and save yourself a lot of money at closing, which means more money in your pocket when the deal is done.

Typical closing costs for sellers can include:

ESCROW FEES

Typically, $2 per $1,000 of the sales price, plus $200

TITLE INSURANCE FEE

Average cost of title insurance is $1000, but this amount can vary depending on the state you’re in and the selling price of your home

CITY TRANSFER FEE

Most cities do not have a transfer fee – you should inquire with your local city office

COUNTY TRANSFER FEE

Again, not all counties charge a transfer fee, but the national average is $750 – the cost is a percentage of the sale price

HOA TRANSFER FEE

Dependent on the HOA itself, but the national average HOA transfer fee is $225 - $250

TERMITE INSPECTION COST

Anywhere from $75 to $150

GENERAL HOME INSPECTION

The average cost for a home inspection in the US is $315 – this too depends on the size of the house

LISTING AGENT FEE

2.5 – 3% of the sale price

BUYER AGENT FEE

2.5 – 3% of the sale price

HOME WARRANTY

Most basic warranties average $350 - $600 per year

NATURAL HAZARD DISCLOSURE REPORT

Generally costs about $120

MISCELLANEOUS REPAIRS

Varies widely depending on inspection report results and the level of repairs you agree to make

MESSENGER FEES

Typically no more than $100

MOVING FEES

Varies widely, depending on the location of your move and the size of home


How to Prepare for Closing Costs

The best way to prepare for the expense of closing costs is to research and understand what all is involved. Even beyond the fees, costs and commissions we’ve already outlined, there are some additional things to think about.

Will you stage your home? That can run up to $1000. Do you need to landscape, paint, redo flooring or just declutter the home in general to get it show-ready? Will you hire professionals to help with these tasks? The average cost to hire professional help to complete basic projects such as these is $4985.  

To help better understand real estate closing costs for sellers, you can use a seller closing cost calculator.

Selling your home can be a stressful experience, but a lot of that stress comes from trying to navigate the unknown. Be better prepared by doing research up front, understanding what the financial cost is to actually sell your home and, perhaps most importantly, figuring out ways to save where feasible. Because the most exciting and rewarding part of selling your home is maximizing the sale price and reducing costs whenever possible.

 


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