Closing costs are fees both buyers and sellers pay at the end of the real estate sale. Both parties can negotiate who pays some of the smaller closing costs. The seller’s main responsibility for closing costs is paying the real estate agent’s commission. Sellers pay a few more miscellaneous closing costs as well.
The largest closing cost for sellers is the real estate agent’s commission. Agents work hard to market your home to qualified buyers, simplifying the selling process for you. They are also skilled negotiators whose services often save you a lot more money than you compensate them with. The cost of an agent’s commission is usually 6% of the sale price but ranges from 5%-8%.
Title insurance protects lenders and buyers from financial loss due to defects in a title to a property. It is common for the home seller to pick up the cost of the insurance. The cost can range from a few hundred dollars to $2,000 but costs $850 on average for the one time fee.
Deed Transfer Tax
A deed transfer tax transfers the seller's legal property rights to the buyer. Sellers usually pay this fee, but it can be negotiated with the buyer.
A recording fee is an expense charged by the government for registering/recording the sale of real estate. The transaction is recorded and becomes a public record. The fee ranges from $100-$200.
The closing fee, also known as escrow fee, can be split between the buyer and the seller. Sometimes, one party will pick up the entire fee. It depends on the exact situation and negotiations for which party will pay. The fee helps safeguard money until the property changes ownership.
Contact Heney Realtors to learn more about closing costs for sellers. We know the central Vermont real estate market and look forward to helping you sell your home!