Seller’s Projected Closing Costs-Home/Land


Real estate commission: Commonly 6% of sale price for homes and 10% for land.

 


Survey: you must expose the bound posts, cut property lines, and obtain an as built

 survey (prices vary by firm, generally $850 - $1,500 per parcel for all)

 

Stamp taxes: (based on purchase price on a graduated scale)
Note: They used to be paid entirely by the Seller. Now it is common to stipulate
on the listing that Buyer is to pay at least half. If Buyer is splitting stamp tax Seller
pays 1/2 of stamp tax listed here depending on sale price:
$0- $350,000 is figured at 2% (so ½ would be 1%)
$350,001 - $1,000,000 is figured at 2.5% (so ½ would be 1.25%)
$1,000,001 - $5,000,000 is figured at 3% (so ½ would be 1.5%)
$5,000,000 + is figured at 3.5% (so ½ would be 1.75%)

 

Property Taxes: They are billed in arrears so the previous year must be paid,
escrowed or credited to buyer at closing, as well prorated for current year which will
appear on the settlement statement.

 

Attorney fees: An attorney is necessary to prepare deed, obtain tax letter, get a
release of mortgage if applicable, prepare and/or review closing statement and/or
documents & to represent seller at closing. Fees are determined by selection of
Attorney. (Usually $200+/hour, or variable based on a specified % of purchase price)

 

Other: Insurance, rents, utilities, (if applicable) & Homeowner Association dues, etc are
prorated to the date of Closing so they usually do not incur additional costs and you
may in fact be due a refund.

 

Helpful Tips:  Provide as much documentation upfront as possible; i.e. copies of: Deed, Paid Tax
receipt, and any income/P&L information available. This ensures there are no hold ups
or surprises at closing