Selling your home can often signal that you’ve got some big changes up ahead. As you prepare to move into this new life chapter, it can be both exciting and stressful - especially working to finalize the sale of your property. But understanding a little about the process can help you get a better idea of what you can expect - and this includes the closing costs that the seller is usually responsible for in a Maryland real estate transaction.
What are Closing Costs?
Closing costs themselves are those costs associated with verifying the property and transferring ownership from the seller to the buyer. They include title and closing fees, such as handling the title search and facilitating the closing. This is in addition to transfer taxes, recording fees, and property taxes that all contribute to the closing costs.
The amount due for each one of these items will depend on the final sale price of the property. For instance, recording fees in Maryland are about .02% of the sale price while transfer tax may be about .50% of the sale price.
Each one of these items needs to be addressed in order to successfully and legally transfer a piece of property from one owner to another. Both the buyer and the seller are responsible for closing fees in Maryland. And who has to pay what is often negotiable?
Other Costs To Consider
As the seller, there are additional costs you may find yourself responsible for at closing. This includes costs and fees such as:
Owner’s title insurance. This is often paid for by the buyer, but it is not uncommon for them to try to negotiate and have the seller pay for it or pitch in.
Mortgage payoff. If the seller has an outstanding mortgage on the property, this will need to be paid off (including any prepayment penalties if applicable).
Property appraisal fees. The seller is often responsible for paying for the appraisal.
Attorney fees. If there was any need for an attorney to get involved or consulted in the sale, these fees will need to be paid.
Realtor fees. Sellers who use a real estate agency may be responsible for realtor fees. Though, again, these are often negotiated.
Judgment or lien payoff. If any judgments or liens have been placed on the property, these will appear in the title search and will often have to be taken care of by the seller.
HOA or Condo association fees. If there are any outstanding fees, these should be paid prior to or at closing.
Working with a title company can make this transaction go smoothly as all the necessary information and documents are gathered.
How Much Will a Seller Pay in Closing Costs?
It is important to note that closing costs for sellers can vary greatly nationwide - as well as what the seller is responsible for. In Maryland, you can expect to pay around 1.25% to 2.0% of the final sale price. For example, on a home with a $500,000.00 sale price, you may pay about $6,250.00 in closing costs. Though keep in mind there are so many different factors that can influence this cost. Taking advantage of a closing cost calculator can give you a much better idea, with many specifics taken into consideration. These costs most typically come out of the sales proceeds.
As we’ve stated above, there are several other things a seller is responsible for so those amounts will also need to be taken into consideration.
Learn More About Closing Costs
At Endeavor Title Company, we understand that you are selling your home and have big plans ahead of you. So, knowing what you can expect to pay at closing is important. And we can help.
Contact us today at 410-666-3780.