Seller Closing Costs

Closing costs are not paid only by buyers. To close the loan, you will need to contribute some cash as the seller. Let's look at the most common closing costs that sellers have to pay in order to close a house sale.

• Attorney's Fees

  Sellers who have hired an attorney to represent them at closing are responsible for their attorney fees. Sellers don't usually cover buyer's attorney fees, except in cases where they are granted. The exact amount of attorney fees you pay will depend on where you live, how long your attorney spends to complete the sale, and how much time you have.

• Credits For Closing Costs

  You might have to take additional steps to sell your house if there is low competition. You might offer your buyer money to help cover some of their closing costs. You will need to pay closing credits (also known as seller concessions) if they were included in your sale agreement.

• Escrow Fees

  Both the seller and buyer benefit from escrow accounts. You can rest assured that the buyer won't try to take your money or resell your home. Because both sides benefit from the account, many sellers pay 50% of any escrow fees.

• HOA Fees

  You will need to ensure that your HOA fees are paid up until closing, just like your property taxes. HOA fees that you owe at closing will usually be equal to a percentage the month's dues. To find out how much you will need to pay, contact your HOA.

• Prorated Property Taxes

  Property taxes are due when you sell your house. They accumulate up to the date you sold it. These fees can vary by state or municipality. Check your local county clerk's to find out what you owe prior to closing. The buyer will take over the dues once you have your property taxes in order.

• Real Estate Agent Commission

  Sellers typically pay both the buyer's and seller's agent commissions. The average real estate commission rate is between 5% and 6% of the loan amount. However, the rates can vary. The fee is split equally between the buyer's agent as well as the seller's.

• Recording Fees and Transfer Taxes

  When a property is sold, fees are charged by the local or county government. Transfer taxes and recording fees are usually paid by the seller. The seller may be required to pay fees to the state government, county government, or both - this all depends on your state.

• Title Insurance

  Title insurance premiums are usually paid by the seller. Title insurance does not require a monthly premium, unlike other types of insurance. Once the seller has made a single payment at closing, you will have coverage for the life of your home. Title insurance is usually 0.5% to 1% of the home's total value.