Both buyers and sellers of Real Estate have closing costs associated with the transfer of real estate. Each pays something different and as a top Wake Forest NC Real Estate Agent it is my job to be sure that PRIOR to closing I provide either of them (depends on who I represent) their estimated closing costs.
In the case of a home seller that comes in the form of Seller Net Proceeds. While I can not give exact figures for what closing costs are my years of experience do allow me to be very accurate is estimates. So, if you are thinking of selling your home in Wake Forest NC here are the costs that will be associated with the sale.
- Document Preparation: Cost will vary from attorney to attorney but an good estimate is $200.00. This is the charge for the attorney to prepare YOUR deed for transfer to buyer.
- Transfer Tax: This is a tax that is charged for selling your home. In North Carolina the charge is $1.00 for every $500.00 pf the sales price. (.2%) Example: A home sells for $300,000.00 so the transfer tax charged to the seller would be $600.00
- Commission: This is the charge from the real estate company to sell your home. Each company charges a different fee and it would have been predetermined when you signed the Listing Agreement. This could be a percentage of the sales price or even a flat fee – it depends on what you agreed upon with your Realtor®
- Real Estate Taxes: These are not to be confused with the Transfer Tax above. These are your annual Property Taxes. They must be prorated which means that you as the seller will pay for your portion up to the day of closing.
- Homeowners Association Dues: This may not apply to you but if your home is located within a subdivision that has a Homeowners Association then you will be required to pay your Homeowners Association Dues up to the time of closing.
- Current Loan Payoff: This is the amount of the current mortgage on your home if you have one. The attorney that is handling the closing will request a payoff from your mortgage company prior to closing and then will pay your current mortgage with the proceeds from the sale of your home.
The above are standard charges to a seller when they sell their home. Keep in mind that there may be additional charges depending on the Contract that you have agreed upon with the Buyer. For instance, did you agree to pay a portion of the Buyer’s Closing Costs? Did you agree to pay for a Home Warranty for the Buyer? Those charges would then be added to the above mentioned charges and would be reflected on the Settlement Statement.
If you have any questions regarding any of the charges that I mentioned above OR if you would like to get an idea of what your profit would be from selling your home in Wake Forest NC just give me a call at 919-649-6128 or simply send me an email! I would be happy to prepare a preliminary Seller Net Proceeds for you!
* It is VERY important to note that the above is only specific to NORTH CAROLINA! Each state handles closings differently and each state may have different fee structures. If you are in another state reading this and would like more information regarding YOUR net proceeds in YOUR state give me a call – I have a WIDE network of professionals in every state that can help!