If you are looking to sell your home, naturally, you want to have an idea about the closing costs for sellers and other expenses when selling a property.
The home seller will generally have to pay several closing costs and these vary from region to region. What is important is that a home seller knows the obligations before finalizing a sale. Knowing these things will keep you from getting disappointed while you are transferring ownership of a property. Having a closing cost calculator is also helpful.
Seller Closing Costs
There is huge money involved in home sales that is why transactions such as that require several steps before they get completed. You want to close a sale and walk away from it without thinking about anything else. As a seller, you want to know what are the other costs incurred to sell a home.
What closing means
When you close a property sale, there is the whole process of transferring the payment and documents between buyer and seller.
This means that all the loans on the house must be paid, and the title must be clean. The buyer usually pays earnest money to the real estate agent or lawyer and this functions as security.
Closing costs for a home seller
Sellers are usually asked for the commission and other incentives. Here are the costs of closing a home sale.
Real estate agent commissions
The seller is the one who pays for the commission of the real agents from both sides.
Loan payoff costs
There are home sellers that want a price for their house that will allow them to pay off their mortgage and other debts. Before setting a sale price, it is best to ask the lender first for a final quotation of the pay off the price so that you can decide on a selling price that will not leave you lacking in the budget.
Taxes
There are transfer taxes and recording fees, as well as property taxes as part of the closing costs of the seller.
Transfer taxes are those paid to the government. These taxes are paid by the seller before handing the keys to the buyer.
Fees
The title insurance fees are other fees that are part of the closing costs. Usually, it is the seller who pays for the title insurance premium. This protects the buyer and lenders if there is a problem with the deal.
Attorney fees are also paid for by the seller. However, sometimes, there are arrangements where the buyer pays for those.
There are other fees involved such as unpaid homeowners association dues, prorated property taxes, and others that might need to be settled before final turnover. These closing costs are shouldered by the seller and are separate from buyer’s costs.
Blake Mortgage has been in the industry for a long time and they know the ins and outs. If you are looking for your dream home, Blake Mortgage can help you with that. If you want to sell your home, they can also help you find a buyer for it. Please visit here for more details: https://www.blakemortgage.com/2019/10/16/the-ultimate-guide-to-closing-costs
