How do you estimate closing costs for a seller?


Quick Answer

Talk to your realtor and your chosen title company to learn their fees, and figure out what balance remains on the mortgage, if any, says Realtor.com. Use an online calculator such as those provided by Samuel Scott Financial Group or Great American Title Company to estimate the cost.

Continue Reading
How do you estimate closing costs for a seller?
Credit: American Advisors Group CC-BY-SA 2.0

Full Answer

There are closing costs beyond realtor and title fees, explains Realtor.com. The escrow company's fee is in the closing costs. If there is more than one mortgage or a lien on the property, these also factor into the cost. Notary and recording fees are for official paperwork relating to the sale. The buyer sometimes requests a seller concession, money for repairs or a warranty, which are all factors at closing, as well. Create a list of these costs.

Once you have this list, visit an online closing cost calculator, such as the one at Samuel Scott Financial Group. To use the calculator, enter the sale price for the home as well as the original mortgage amount and the balance remaining. Add any other applicable costs from your list.

The final tally shows the gross equity, which is the sale price minus paying off the mortgage, and then a detailed list of the various fees based on your entries. At the bottom is the net equity in the house, which estimates the profit after closing, reports Samuel Scott Financial Group.

Learn more about Real Estate

Related Questions