What are seller closing costs for a real estate transaction closing, escrow, or settlement? | Close My Home Sale

About                                         Contact

What are seller closing costs for a real estate transaction closing, escrow, or settlement?

Misconceptions about closing costs:
  1. Closing costs are listed on the purchase agreements.
  2. Buyers and sellers negotiate/divide up who will pay what costs from an established list of standard charges.
  3. Buyers pay all closing costs
  4. Sellers pay all closing costs
  5. Closing costs are standardized, or one lump sum
  6. The seller needs to bring a bunch of checks to closing and pay each closing cost vendor indvidually
For seller closing costs, here are some important points to remember:
  • These same, exact costs are paid by sellers whether they sell with a huge commission traditional agent or without any professional assistance or MLS listing.
  • Seller closing costs typically involve the costs to prepare their ownership documents for transfer, these costs are paid to a closing company or attorney. They are never paid to our brokerage.
  • There are generally multiple governmental fees and taxes to transfer property.
  • These fees are not to be confused with the buyer closing costs, which are generally much higher because they involve substantial costs related to getting a mortgage (appraisal, title insurance, loan application, mortgage origination, etc.).
  • There are governmental recording fees paid at closing by the seller for recording the deed and satisfaction of existing mortgage(s) after the transaction is complete.
  • Local custom can cause some variation-in a few areas, if you move from one county to the next, the custom/tradition becomes that the seller pays for the Owner's title insurance, or a particular fee is split 50/50 between buyer and seller.
  • The best way to get the most accurate estimate of your expected closing costs is to contact a local title company, tell them you are a seller, answer their questions and receive an estimate. Some now have website cost estimators as well.
  • The typical closing/escrow/settlement involves the seller signing a settlement statement (among other documents) that shows all the different closing costs, deducted from the sales price, and the mortgage balance payoff, and receiving one check/wire of the net proceeds.
<span">Closing costs vary greatly depending on the area and how many governmental fees are charge.
FAQ Category: