Overview
- Closing costs when selling a house are expenses due for both buyers and sellers when the sale closes.
- For sellers, potential closing costs have historically totaled 8 percent to 10 percent of the sale price, according to Zillow.
- Closing costs for sellers can vary depending on your location. They can potentially include transfer taxes, title insurance, HOA fees, escrow fees, agent commission, attorney fees, prorated property taxes, mortgage payoff expenses and credits toward closing costs.
- It’s possible to reduce closing costs with strategies such as acting as your own real estate agent, negotiating with other parties involved in the sale, shopping around for the best deal from title and escrow companies, and determining if you qualify for a reduced rate on your title insurance policy.
- Our home seller’s closing cost estimate calculator can help you determine how much you might owe.
You’ve probably heard the saying, “You have to spend money to make money.” That sentiment holds true when selling a house, including during the process of closing the sale. Before selling your home, here’s some essential information to consider about closing costs and how to estimate how much you’ll pay when finalizing the sale of your home.
What Are Closing Costs for Home Sellers?
During the sale of a house, closing costs consist of expenses other than the sale price associated with transferring property ownership, according to Investopedia.
If you’re selling your house, the closing costs will vary depending on your location (i.e., the local tax rate), home value and real estate agent’s commission, according to Zillow. Examples of possible closing costs for sellers include
- Title insurance
- Transfer taxes
- Homeowners association fees (HOA)
- Escrow fees (also called settlement fees)
- Real estate agent’s commission
- Attorney’s fees
- Prorated property taxes
- Credits toward closing costs (a.k.a., seller concession or seller assist)
- Payment of your current mortgage (unless you own the home, according to NerdWallet)
When Will I Need to Pay Closing Costs When Selling My Home?
As the name suggests, closing costs are due at the close of the home sale, according to Bankrate. It’s recommended that you prepare any necessary money orders or checks and bring them with you to your meeting with the closing agent, buyer and any other parties involved (e.g., the title company or attorneys).
How to Minimize Closing Costs for Sellers
It’s possible to lower the expenses associated with selling your home. Here are some strategies that can minimize closing costs, according to Zillow and Bankrate:
- Negotiate with the other parties involved (buyer, real estate agent, title company, attorney, etc.).
- Act as your own real estate agent to avoid paying the commission (although this will require a significant amount of labor on your part).
- Shop around to ensure you’re getting the best deal from title and escrow companies.
- Determine if you qualify for a reduced rate on your title insurance policy.
How Much Should I Expect to Pay in Closing Costs When Selling My Home?
Historically, closing costs for sellers have averaged from 8 percent to 10 percent of the sale price, according to Zillow. Our home seller’s closing cost estimate calculator will help you determine approximately what you can expect to pay. For a precise number, however, we recommend contacting your title company.
If you’re selling your house, Avalon Suncoast can help. Check out our information for sellers, which covers the true market value of your home, recent sale stats and other essential resources.
You can also connect with our real estate experts by calling 941-235-7474 or emailing sales@avalonsuncoast.com.