Are you wanting to sell your house but you have questions about closing costs? That’s totally understandable. Most people don’t know what is included…Here is a basic breakdown to help you out.
Which closing costs are covered by the seller
Title search fee
The cost to pull the public property records and deed records and review them to make sure there are no existing liens or other encumbrances on the title is the title search fee, paid to the title company.
Municipal lien search charge
This is the fee that the municipality charges to pull the title.
A transfer tax is levied when a property title changes owners.
Recording and other fees to cure title
If there are liens, judgments, easements, or other encumbrances on a title, fees to clear them are typically due before or upon closing. The process of making a title clean is known as “curing title defects.”
HOA estoppel fees
This is a fee only assessed if the property is within an association-governed development. It’s the fee the homeowners association (HOA) charges to make sure your account is in good standing, with dues paid and no special assessments owed.
Real Estate Agent fees
The largest part of closing costs for the seller, real estate agent fees typically include commission on the sale for both the buyer’s and seller’s agents.
How much are closing costs?
There are no set amounts for typical closing costs — they generally come out to 8% to 10% of the home’s purchase price. The factor that causes the most variance state to state on homes with similar purchase prices is the tax.