What are the closing costs when selling a house?


Quick Answer

The closing costs when selling a house are typically about 6 to 10 percent of the property's sales price; these costs include the real estate sales commission, loan payoff, title insurance fees, transfer taxes, and recording and attorney fees, according to the National Association of Realtors. Other seller closing costs include judgments or liens against the property, homeowner association dues and prorated property taxes. The seller may also pay the premium for a home warranty or make a seller concession.

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Full Answer

The real estate sales commission is a significant portion of the seller's closing costs, and is usually about 6 percent of the sales price but can vary from state to state, notes the National Association of Realtors. The seller's broker and the buyer's broker split the commission, and then pay their agents. Seller concessions assist buyers in paying their closing costs. For example, if a seller makes a 2 percent concession, the seller and buyer agree to increase the sales price by 2 percent. Then, the seller returns the two percent to the buyer to pay for closing costs.

The terms of a sales contract can include closing costs applied to the seller, such as a termite inspection or repair costs for problems a home inspection reveals, explains the National Association of Realtors. Sellers who incur expenses to enhance the appearance of their homes, such as a fresh coat of paint, should factor these costs in with their closing costs, even though the expenditures resulted in a higher sales price.

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