What Are Seller Closing Costs?
When you sell your home, you’ll likely be surprised by how many costs are involved. There are fees for everything from the appraisal to the title search. But don’t worry; we’re here to help you understand seller closing costs.
Seller closing costs are the fees a seller pays to cover the costs of selling their home. If you plan to sell your property, you need to know that the associated costs will be one of your most significant concerns.
What are seller closing costs? Check this helpful guide to help clear things up.
The Mortgage Insurance
Seller closing costs are the fees and expenses associated with the transfer of ownership of a property. Mortgage insurance is one type of seller closing cost. This insurance protects the lender if the borrower defaults on the loan.
Mortgage insurance is typically required on loans with a down payment of less than 20% and can add several hundred dollars to the total closing costs.
Taxes and Fees
When you sell a home, you can expect to pay various taxes and fees at closing. These are typically split between the buyer and seller, with the seller usually paying a bit more.
Taxes and fees are can vary depending on the state and municipality in which the home is located. In some cases, these costs can be significant, so it’s essential to be aware before listing your home for sale.
The Home Appraisals
A home appraisal is an estimate of the value of a home, typically conducted by a professional appraiser. The cost of a home appraisal can vary depending on the size and location of the home, but it is typically a few hundred dollars.
View here for more information about home appraisals.
The Real Estate Agent Fees
The seller will be responsible for paying the real estate agent handling the sale of a property. This fee is usually negotiable.
Typically, a real estate agent charges a percentage of the sale price, depending on the agent and the type of property sold.
The Home Inspection Fees
Home inspection fees are paid to the home inspector for their time and expertise in inspecting the house and identifying any defects that may need to be repaired. The home inspection cost is usually between $200 and $500, depending on the size and age of the home.
The Title Insurance
Title insurance protects the lender or buyer from losses if property title problems happen. The cost of the premium is based on the value of the home and is typically paid at closing.
Why It Matters to Understand What Are Seller Closing Costs
Seller closing costs can be expensive, but there are ways to minimize them. Understanding these costs and working with your real estate agent can keep more of your hard-earned money in your pocket.
That said, if you decide to hire an attorney to close your home, that can also mean another legal fee.
Browse our website to learn more about what are seller closing costs, so you are prepared!