Many sellers don’t realize how much they will have to pay in closing fees. The largest chunk of the fees is real estate commission.
Click Closing statement Virginia 2018 to see a sample HUD statement – it’s a document you will sign at closing that will show all your closing fees. Look at seller’s side to see the costs for the seller.
1. First you will pay prorated amounts for taxes and condo/HOA fees to the buyer. If you already paid taxes and condo/HOA fees for the month you are settling – you will get a credit instead.
2. Grantor’s tax. You will pay $1 per $1,000 per thousand. So if your house sells for $700,000 – your tax will be $700.
3. Congestion fee. That’s an additional tax that went into effect July 1, 2013. You will pay $1.50 per $1,000. So if you sell your home for $700,000 – you will pay $1,050.
4. The 1st part is real estate commission. This can vary a lot. Some of this commission will be paid to the listing agent and some to the buyer’s agent. If you work with me you will pay 5% – 2.5% to Keller Williams and 2.5% to buyer’s agent.
5. Realtor administrative fee. In addition to the commission some companies/real estate agents charge an administrative fee – that can vary from $250-$600. I do not have this additional fee and will charge you ZERO.
6. Settlement company’s fees. These charges will include a settlement fee, seller document preparation fee, mortgage release fee. I would say budget for about $750.
7. Termite inspection. If the buyer marked that you will do a termite inspection – you will have to pay for that . Costs vary from $35-$70.
8. Home Owner’s Association document fee. You will have to deliver a package of HOA documents to the buyer if your community is a planned development. You will pay $150-$350 for these documents.
9. Repairs. Don’t forget to take into account that once the home inspection is completed – you will have to pay for some repairs.
These are main fees for the seller. If you’d like to calculate your closing costs and see your NET – go to this site. Then choose a proper jurisdiction and enter all required information.