When your house is sold, the buyer has the Bulk of the responsibility regarding closing costs. But did you know that as a seller, YOU have some seller closing costs also? Your costs are not nearly as much but this information is important to know ahead of time.
It’s not cheap to sell your house but if you focus on the profit and then subtract the expenses, you’ll feel much better about the whole thing! Are you unclear on what your expenses will be? I’m here to explain in order of amount, highest to lowest.
When are Liens Paid Off?
Liens are paid off first. Generally that’s the mortgage but can also include any attachments to your property such as from the IRS or your state’s Department of Revenue. Other liens can be: municipal liens i.e. back taxes owed or mechanics liens which would be a bill for work done on the property by a tradesperson, such as a new roof, that was never paid.
Realtor Fee: Obviously your realtor gets paid when she sells your house. There is no “typical” commission rate. Depending on where you live, it can range form 4-7%. Some land rich areas charge up to 10% to sell their lots. What ever the percentage you agreed on is part of the cost of sale.
Transfer Tax Stamps: This cost is based on the sales price of the house and each state has their own amount per thousand. RI is $4.60 and MA is $4.56
Do I Need an Attorney?
Attorney also gets paid for the Deed Preparation, Title search and reviewing of the Purchase and Sales agreement and settlement statement. Some sellers use the Buyer’s attorney who has been hired by the lender for the closing. There is no conflict of interest should you choose to use this attorney.
When are Utility Companies Paid?
Adjustments: These are for any payments that you made in advance, such as, taxes, homeowners insurance, Water and sewer, and electric. You can also have the oil company check how much fuel is left in the tank and receive a credit.
If you agreed to pay the buyer’s closing costs or for any repairs in lieu of having them done would also be subtracted at the closing. Again, be sure to have your attorney check these figures prior to the closing.
And that’s it! You will still walk away with a check in your pocket and a smile on your face! To learn more about selling your home, check this out: https://deewebsterrealtygroup.com/home-sellers-guide/