Selling 101: Closing Costs Explained
Deciding To Sell
Do I Need an Agent?
Cost of Selling
When is the best time to Sell
What do I need to disclose
Buy First or Sell First
Phase 2: Preparing Your Home
Initial Impressions Count
Basic Repairs and Maintenance
Mini Remodel Projects
Staging and Decorating
Pricing Your Home
Utility Bills
Pre-Sale Inspections
Phase 3: Marketing Your Home
Letter To Buyer
Marketing
Professional Photography
What To Expect While On Market
Factors For Buyers
Showings / Previews
Phase 4: The Purchase Agreement
Purchase Agreement
What are Sellers Concesssions
What are Contingencies
Buyer’s Inspection
Phase 5: The Closing
►Closing Costs Explained◄
Title Work
Appraisals/Underwriting
Utility Billing
Preparing For Closing
The Closing
Commission
Commission – The commission paid to the real estate brokers associated with the transaction. This includes the commission for both the buyer’s agent and the seller’s agent. All commissions are negotiable.
Broker Admin Fee – Real estate brokers charge an admin fee, or brokers commission as part of the closing costs. This usually ranges from $350-500.
Title Fees
Title Fee – The fee to prepare the title work for the seller’s side of the transaction, usually about $300-350.
Recording Fee – The amount to record documents with the government ($71 per document)
Courier Fee – The amount to courier over the documents ($25 per service)
Lender’s Title Insurance – If the buyer has a mortgage, the lender will require title insurance to cover their interests. Title insurance is an insurance product that protects the ownership rights to the property. If there is a dispute in title, this product will step in to help fix the dispute, for the lender. (varies)
Owner’s Title Insurance – This product is to protect the buyer’s interest in the title. (varies)
Title Search and Exam Fee – In order to convey the title to the buyer, we need to know the history of the title. This is to research the history and make sure that all the pieces are there. (varies, $500ish)
Title Services – This fee is for miscellaneous services such as courier fees. About $100.
Governmental Fees
State Deed Tax – $0.0033 to $0.0034 per $1000, depending on the county
Conservation Fee – $5
Special Assessments – Any special assessments usually are paid by the seller.
Taxes and Interest
Balance of Real Estate Taxes Due – Taxes due prorated to the day of closing. This can be a credit or a debit.
Interest Adjustment – One full month of interest on your current loan.