Closing Costs and Fees Paid by Home Sellers

By Teresa Cowart in Blog,For Home Sellers. Tagged:

Closing Costs Paid by Home Seller

Many people associate closing costs with buyers, but sellers too are responsible for a portion of these costs. In addition to paperwork and carefully reviewed contract agreements, knowing a good estimate of your closing costs are also important for a successful closing.

Outlined below are the general costs and fees sellers may pay in a real estate transaction.

Real Estate Commissions

When a seller choose to work with a realtor to help them sell their home they will be responsible for paying the realtor’s commission.

Inspection Finds

If the buyer gets the home inspected and issues arise, the seller has to pay the repairs unless otherwise agreed in the contract.

Title Insurance Fees

Both sellers and home buyers pay these fees. The seller pays for them to prove to the buyer that the title is clear. The buyer pays a title insurance fee to prove to their lender that the title on the home they want to purchase is clear.

Transfer Taxes

When a title is transferred from one party to another, taxes can be issued. The seller is to pay these taxes.

Mortgage Interest

In the span of time between the contract agreement and settlement, the seller is in charge of paying for mortgage interest. Once settlement is complete and the property is in possession of the buyer, the responsibility of interest payment switches to the buyer.

Notary Fees

Any fees associated with notarizing various documents in the real estate transaction will be paid by the seller.

Property Taxes

Similar to mortgage interest, any property taxes (including back taxes) until settlement, will be paid by the seller.

Loan Fees

If the seller has a loan that issues a fee to pay off the balance early, the seller is in charge of paying that fee.

The above are many but not all the fees that a seller may be responsible for. Buyers also can try to negotiate that the seller pay the buyer’s closing costs as well. If the seller agrees it would be considered a seller concession. It’s worth noting some lenders have limits on seller concessions. It may seem like a lot of fees to pay just to sell your home, but keep in mind sellers have some great tax benefits as well!

Additional reading on buyer and seller closing costs: Realtor.com



More Articles for Home Buyers
More Articles for Home Sellers

Thanks for reading my blog! It is my goal as your full service real estate Realtor specializing in the Richmond Hill, Savannah, Pooler, and Hinesville – Georgia areas, to provide you with exceptional service at all times. My promise to you is to openly and honestly answer all your questions, help you navigate through the process and to make myself available to you day and night. I work for you and you are my priority. My local expertise and extensive real estate training and experience will benefit you whether you are serious about buying or selling a home at this time, or are a returning client checking out the many homeowner resources I offer. I am a “real” person and my reputation depends on every client, every deal, every day. I LOVE my job and it shows! You can also connect with me on my Facebook Page and/or Google Plus for area info and events, things to do, real estate news, home ownership tips, tips for both buyers and sellers, and so much more! I’m also on Pinterest!