Typical Closing Costs When Selling Your Own Home
If you are thinking about selling your home with a realty company, they will most likely do a net to seller analysis for you. Closing costs when selling your own home will be less than if you hire a realty company. Either way, you should have an idea of what costs to expect. This way you can determine how much money you will make when selling your home.
The following are typical closing costs that are paid for by the seller in Wake County NC:
- Loan Payoff Costs
- Real Estate Commissions (If using a realty company)
- Transfer Taxes
- Notary & Document Fees
- Attorney Fees
- Buyer Closing Costs
- Last Minute Repairs
Loan Payoff Costs
This will be your largest expense if you have financed your home. FHA loans require a 3.4% down payment but some conventional loans require as much as 20%. Look at your most recent mortgage statement for your current balance. This information should also be accessible online.
Real Estate Commissions
If you are selling a home by owner you will not be paying a real estate commission unless you choose to work with a buyer’s agent. Real estate fees vary from state to state. If you work with a buyer’s agent the fee in Raleigh NC can be anywhere from 2% – 3%. On a $200,000 house this can be anywhere from $4,000 – $6,000. If you have hired a full service realty company the total brokerage fee paid can be up to 6% of the total purchase price. This would be $12,000 on a $200,000 house.
These are taxes paid by the seller when they their house is sold. This is not to be confused with capital gains tax. Consult with a CPA when selling a home other than your primary residence. In Wake County NC, the seller pays $1 forevery $500 of the sales price. So, if the sales price is $200,000, the excise taxes would be $400 (200,000/500 = 400). This does depend on the state in which you are selling the property. I have a close friend who recently sold a property in New York City. His total excise tax on the sale of the property was a whopping $11,000!
Notary & Document Fees
These costs are very small, but you should still be aware of them. When I buy and sell houses in Raleigh these fee’s only total to about $100. Check with your local register of deeds to inquire about fees.
The attorney is one who will perform the title search, prepare
the closing statement, prorate county taxes, and disperse all
funds. The fee attorney’s charge in Raleigh NC are anywhere from $400 – $600.
Buyer Closing Costs
These are the fees that are the most overlooked. Buyers have to come up with a down payment of anywhere from 3.4% – 20% of the purchase price of the house. On a $200,000 house this can be anywhere from $6,800 – $40,000.
The buyer will also have to pay loan origination fees, discount points, appraisal fees, credit fees, mortgage insurance premiums, escrow payments, survey, and home inspection fees. It is becoming more and more common for buyers to push some, or all, of these costs on to the seller. Buying a house is expensive and the buyer might not have enough cash to close the transaction. Many new home builders are offering free upgrades, appliances, and discounted closing costs which forces the typical home seller to compete with.
Last Minute Repairs
Almost all buyers are going to get a home inspection. I have yet to see a home report that didn’t have at least one item on it. At this point the seller is usually asked to make the repairs that are noted on the list or leave money behind so that the buyers can pay to have them fixed.
If you would like to avoid the hassle of paying all these closing costs when selling a home in Wake County North Carolina, simply fill out the form below and let us make you an offer today!