One of the questions we are confronted with when we meet with potential sellers is “what is our bottom line going to be?” It’s a very fair question because when deciding to sell your home that is all that truly matters on the financial end of the transaction. The following is a summary of the closing costs a seller could reasonably expect when selling their home through DeFino Realtors. We will attempt to list them in order from largest to smallest.
Mortgage payoff: The balance of any and all mortgages attached to your property ( typically this is the largest closing cost, unless of course you owe nothing or very little on your home)
Realty commission: *3.9% of final contracted sale price
Realty transfer fee: There is a formula for this fee that can be calculated, but it equals slightly than 1% of the sale price as of 2014. ( There are some exemptions to this fee, for seniors and other groups)
Attorney fee: Attorney fees will vary depending on whom you hire to represent you. The fees for attorney representation for the seller side typically ranges between $950.00-$2,000.00.
Recording fees and miscellaneous fees: These are hard to determine but are usually below $300.00 in their entirety.
Taxes and Utilities: Depending on what time of the year you close you may owe additional property taxes that have not been paid. You will also need to satisfy all of your sewer and water charges that are not paid to date.
The following is an example of the closing costs on a $500,000.00 sale price with a seller ( that listed with DeFino Realtors) that has a zero balance on their mortgage:
|Mortgage Payoff:||$00.00 ( if you have a mortgage, you would also reduce that amount from your contract price)|
|Realty Commission:||$19,500.00 ( includes both brokers)*|
|Realty Transfer fee:||$4,175.00|
|Attorney fee:||$1250.00 **( ** this is an estimate and or an average attorney fee, fee could be higher or lower depending on attorney)|
|Recording fee:||$150.00 (estimate)|
*in the state of NJ all commissions are negotiable