What Are Closing Costs for Home Sellers?

if you’re ready to find an agent and list your home for sale, there are many hidden fees involved with selling a home that you will want to be prepared for ahead of time. This guide will cover ways to avoid surprises in the home-selling process and explain the ins and outs of closing costs for seller

What Are Closing Costs for Sellers?

To finalize their transaction, both the buyer and the seller must pay a plethora of fees known as closing costs. Many people are aware of closing costs for buyers but may not realize what is entailed in sellers’ closing costs.

Here are a few fees for homeowners to watch out for as they prepare to close on a deal.

Agent Commission

The most significant cost that home sellers are responsible for is agent commission fees. Commission rates are usually around 5-6% of the final sale price, split between the buyer's and seller's agents. Therefore, on a $300,000 home, commission fees could total $18,000.

Transfer Tax

Once you officially transfer ownership of a home, the state, county, and/or city where the property is located will charge taxes and fees. Although sometimes these fees are split, it's pretty common for the seller to cover these costs.

Title Insurance

A title insurance policy protects its owner from disputes about homeownership.