There are common charges that a seller is going to be responsible for when selling their home. They will all be shown on the settlement sheet that you should receive a couple of days before closing so that you can go over the figures. If you have any questions, get your REALTOR® and the title company involved.
- Title insurance (if seller is paying for the buyer). This will be bundled with the buyer’s closing costs that may have been negotiated into the contract.
- Title Company closing fee. This is a fee paid to the title company for completing your portion side of the closing. (Approximately $150-$175)
- Termite inspection (if seller is paying). (Approximately $60)
- Laclede gas inspection. A seller agreed inspection is normal for any contract and costs the seller about $150 on their last bill, which is not a part of the closing figures. It will be mailed to your next address.
- Recording of releases. (function of you as the seller closing) (approximately $150)
- Taxes. You owe the taxes on your property from January 1st until the closing date. If you have already paid them, you will get a credit for the rest of the year from the closing date at closing.
- Home Protection Plan (if seller is paying this is a good offer for the buyer if your systems (A/C, plumbing, electric, furnace, etc. are older than 20 years. (Costs between $450-$500)
- Buyer’s closing costs (if seller is paying) this is whatever you may have agreed to pay for the buyer. It cannot exceed 3% of the sale price.
- Mortgage loan pay off. This is whatever your loan balance is on the day of closing.
- Pre-payment penalty. This is only for FHA and VA loans if the loan is not paid off by the last day of the month. To ensure this happens, close no later than the 29th. The cost of missing the payoff is another months’ worth of interest. Be safe not sorry!
- Any repairs required on the sales contract. These are negotiated between the seller and the buyer and are usually performed before the closing. They may be paid for at the closing if you can negotiate with the contractor.
- Commission. This means whatever percentage of the sales price you agreed to pay your real estate agent. This is the total commission. If another REALTOR® is involved they are paid out of what you agreed to pay your REALTOR® amount.
If you have any questions regarding the cost of selling your home email me at [email protected].