If you are a first-time home seller, you may wonder what your closing costs will be and what is expected of you during this part of the real estate transaction. Being a home seller is very different than being the buyer when it comes time to close. From the amount of paperwork you will sign, to the financial obligations, your role in the closing is much smaller than it is for the buyer.
But, here are some things to keep in mind.
The closing signifies the completion of the sale of your house with the transfer of title from you to the buyer. This is where you will sign several documents, including the closing statement, which shows the contracted selling price you’ll receive from the buyer, minus the balance you owe on your mortgage and any other loans attached to the property. The Realtor fee for marketing your home and representing you throughout the process will also be deducted from the proceeds.
As a seller, you have a few other deductions like the cost of the new deed and the government transfer taxes and recording fees. In New Hampshire, the real estate transfer tax on the sale, granting, and transfer of real property or an interest in real property, is $ 7.50 per thousand. In Massachusetts, it is $4.56 per thousand. This cost is USUALLY split between the buyer and seller.
Sellers also pay prorated property taxes and any town/city fees, such as prorated sewer and water bills that remain. Any additional costs you have agreed to pay (for example, if you offered to contribute a set amount towards the buyers’ closing costs) may also be deducted at this time.
The remaining proceeds are all yours and are typically paid to the seller in the form of a certified check or electronic transfer into their bank account.
There are other situations that can impact a sellers’ financial obligations at closing. I would be happy to answer your questions and offer a no-obligation market analysis of your property to determine its current market value. Please give me a call; I would be pleased to offer my experience and knowledge.