If you need to sell your home and have never been involved in the process, you may not know about the closing costs you would be responsible for. Discover what closing costs to expect in today’s blog.
What Are Closing Costs?
The closing statement is an itemized list of credits and fees that shows your net profits as the seller. It summarizes the finances of the whole transaction. It includes the closing costs that a seller can expect to pay at the close of the sale, which can be anywhere from 6 to 10 percent of the final sale price. You can negotiate with the buyer regarding the closing costs and who pays what. (either you or the buyer can choose to pay the closing costs) An attorney would usually handle the closing costs in New Hampshire.
Following are the closing costs sellers are likely responsible for paying in every locale:
- Seller’s agent and buyer’s agent commissions – If you sell your home for $400,000 and the contract with your agent firm specifies a 5% commission, you would owe them $20,000, thus reducing your net to $380,000.
- Loan pay-off amount – If you still have a mortgage, you would pay it off as you transfer ownership. If closing happens in the middle of the month, there may be some charges from when you last paid your mortgage bill. Also, expect to pay a fee for “reconveyance” (documenting that the lender releases you from the debt and additional recording fee charges.) These fees differ and can be double or triple depending on if the closing dates have to be rescheduled, are multiple mortgage pay-off statements, or if recording fees in the area are high.
- Transfer taxes and recording fees – For every home sale in your state and county/city, revenue is generated from the home sale and transfer taxes. They will also charge to enter the property and mortgage deed into the record; however, those fees could be the buyer’s responsibility.
- Title insurance premium and insurance fees – Your buyer’s mortgage lender requires insurance that guarantees the borrower has clear ownership or title to your home. If the title company somehow misses a valid claim on the property when doing a title search, the company pays the lender. The buyer typically pays for the insurance required by their mortgage lender; however, the seller may also be asked to pay a similar policy for the buyer.Often you will see the term “simultaneous” referencing title insurance. This means that work involving the searching of the title is similar for both the owner and the lender’s policy. It also means a lower rate for the combined policies than what two separate ones would cost.
- HOA unpaid dues and real estate taxes – You may have to pay in one year for the previous year’s taxes, so if you move in April, you would owe whatever four month’s worth of property tax is, depending on how you’re billed for property taxes. The same calculations apply to any homeowner association (HOA) dues.
Want a Fast Closing? Contact NH Home Buyers
If selling your home or an unwanted property is a priority, and you don’t have time to go through an agent, contact us. We buy homes in the Southern New Hampshire area, with no commissions, fees, and with the closing of your choosing. Get in touch with us for a no-pressure, no-obligation offer.