Seller Closing Costs
A question we are often asked for Sellers is - “what will my closing costs be?” Each transaction is unique, but this is an attempt to explain the various charges a seller will encounter
Excise Tax/Transfer Tax: this is going to be $1 for every $500 of purchase price, so if the house sells for $250,000, your charge will be $500.00. Divide the purchase price by $500 to get your exact amount for your closing.
Deed Preparation: Our standard Deed Preparation fee is $250, though we offer discounts for military, veterans, first responders, and teachers.
Estate Deed Preparation: if we are preparing documents for an estate, our standard fee is $375, there may be additional charges depending on the nature of the estate, please contact us with specifics so we can properly quote you
Real Estate Commissions: this is an amount worked out with you and your real estate agent, but the seller pays both sides real estate agents (typically a percent of the purchase price)
HOA Fees: HOA Management Companies often charge a fee to produce a “Resale Demand,” which certifies your account is not delinquent and initiates the process of transferring the home account into the new buyer. This is typically $225 (per HOA, if you have more than one count on two charges). If your account is delinquent, you will be charged at closing to catch it up. If you are paid past closing, the buyer will reimburse you at closing for prepaid time.
Property Taxes - In North Carolina, property taxes are billed annually and are for the period of January 1 - December 31. The tax bills are released (no later than) September 1 of the current year and are not considered late if paid by January 5th of the following year. As an example, 2023 taxes will be due and payable September 1, 2023, but you will be considered on time if you pay on or before January 5, 2024. This explanation of timing matters. As a Seller, if you sell the house prior to the tax bill being paid for that calendar year, you will likely give some money to the Buyer for your contribution to the taxes in the form of a proration at settlement (since you owned for part of the year but you cannot pay yet). If you sell after you already paid the taxes for the year, the buyer will have to contribute their pro-rated share of the tax bill for the year at closing to to you on the settlement statement to reimburse you for time you paid you won’t own. Some Counties do not collect for cities, so if you sell in an area that the city collects separate, the same rules apply just add city fees. Consult your local County tax office for an estimate of the taxes for the year (last year’s tax bill will be pretty close, your contract has your parcel ID number on it, that is the number the tax office will use to identify your property). If taxes are delinquent, you will have to pay to catch them up at closing.
Other fees - if you are doing a remote closing, or need additional documents drafted, additional fees will come into play, here is a breakdown of common expenses we see:
Overnight Fees: we pass the overnight costs on to you if we have to overnight documents, it is typically $50 each time it happens
Mobile Notary Fee: we prefer to coordinate and bring a notary to you if you are not local for signing, this person will print the deed package, bring them to you, notarize them, and overnight them back to us, making a remote closing very easy. This is $100 for mobile notary services.
Power of Attorney: we charge $75 to prepare a power of attorney and this will need to be recorded (see above)
Mortgage Payoff Fee: we charge $50 for each mortgage we have to close (this is for coordination and transmittal of funds)
Repairs/Credits/home warranty: If the buyer negotiated repairs, seller paid closing costs, or a home warranty, these costs will be deducted from proceeds
Judgments: there are times when you may have a judgment for money owed, if this is the case, we will have to reach out to the judgment creditor and get a payoff and release amount to be paid at closing. This is very fact specific.
Mortgage Payoffs: we will get a written payoff authorization from you to order your mortgage payoff. We typically collect a couple extra days of interest past closing so there are no problems with cutoff times or shortages, your lender will give you any overages back when they cut you an escrow refund (if applicable).