Closing Costs Guide for Home Sellers
Typically we think of closing costs as something that the buyer pays. However the seller may also be responsible for some fees during the close. In general, much can be negotiated as to who pays what, and it differs from state to state. Here are some general costs:
Lender-Related Fees
- Title search and title insurance: Usually required by the lender; see our article on Property Titles and Title Insurance for more details. Often the seller pays for the title insurance; however, in some states, the buyer pays, since it is required for the loan.
- Unpaid mortgage or home equity: You need to settle all your house-related debts at closing
- Recorded release of mortgage fee: This includes stamps on the loan documents
- Courier fee: Needed to get the money to the lender
Government Fees
Fees other than lender fees are money paid to the state or county. These include:
- Fees for recording the property: Costs vary by state
- Transfer taxes: Usually the state, county or city have taxes on transfer of property; this is sometimes paid, or split between buyer and seller
- Unpaid or prorated property taxes: If you owe any taxes that will be due after the close
Other Fees
- Attorney’s fees: Both buyer and seller have their own attorneys
- Realtor commission: Most often paid by the seller
- Home inspection fee: May have already been paid before the close; sometimes paid by the buyer
- Home warranty: This is a guarantee on the appliances, etc.
- Paid utility bills: May be required as part of close