What closing costs do sellers have to pay during a real estate transaction? There are five main ones that you should be prepared for:
1. Mortgage cancelation fee. The closing attorney will provide you with your loan information and mortgage payoff. Keep in mind, though, that the lender may ask for other fees that don’t show up in these documents.
2. Prorated property taxes. Here in Memphis, when these are collected varies according to which municipality you’re in, but you pay them in arrears. Also, if you have a mortgage, it’s collected from your escrow account.
3. Settlement and attorney fees. This expense will generally cost you between $500 and $600.
4. Title search. As a seller, you have to prove that you have clear title so that it can be transferred to the buyer.
5. Broker commission. In our market, the seller pays for both their broker’s commission fee and the buyer’s broker’s commission fee.
If you’d like to know a more exact estimate of your closing costs, I have a spreadsheet I’d be happy to send you and then help you calculate the numbers.
As always, if you have any other real estate questions, feel free to reach out to me. I’d love to help you.