Buyers and sellers have closing costs associated with the transaction. It is therefore important, before placing the property on sale, have an estimate of the costs you will have to pay to finally be able to determine the amount that can be counted once the transaction is complete
Costs of most common locks for the seller
- Mortgage balance - the balance of the existing loan, balance of the second mortgage and housing credit lines.
- Fee to pay the loan - administrative fee charged by the lender to pay off the loan.
- Release of debt - money that is owed to contractors and/or by court rulings or property taxes. These amounts must be paid prior to closing.
- Penalty for prompt payment - some loans have penalty by paying early debt.
- Registration rates - rates to be paid to document that the debts have been paid in full.
- Fees - fees paid to the real estate brokers involved in the transaction. Usually 6% of the selling price and paid in full by the seller.
- Fees of the notary - the fees charged by the notary public to verify the identity of the signers of the document.
- Costs for trusts - remuneration of an intermediary between the buyer and the seller who handles the money. Custody agents receive the money from the lender, pay all costs, raise deposits and distribute the product to the lender / salesman.
- Cost per title search - proof that the seller has the legal right to sell the House. Title companies seeking public records and produce a commitment to secure indicating that the seller is the owner of the House and shows the details of any lien or other rights which affect the title to the House.
- Concessions of the seller - amount which the seller agrees to give in order to help the buyer to pay their closing costs.
- Repairs - work which the seller should be completed (where applicable) prior to the sale, either as a result of the negotiation of the buyer, or as a condition of the lender.
- Warranty on the House - Protection Plan for the first year of the buyer in the home.
- Warranty on termite - documentation used in some parts of the country that indicated that the House is free of termites.
How to estimate closing costs?
For practical purposes to seller closing costs can be estimated as follows:
- 1.5% on the selling price, more
- Property taxes accrued to date, more
- Mortgages or lines of credit that may exist on the property, more
- Commissions (generally 6% on the selling price)