Accounting

Customary Seller Fees

What fees do I pay in escrow?

Closing costs for sellers can reach 8% to 10% of the sale price of the home. It’s higher than the buyer’s closing costs because the seller typically pays both the listing and buyer’s agent’s commission — around 6% of the sale in total. Fees and taxes for the seller are an additional 2% to 4% of the sale. However, seller closing costs are deducted from the proceeds of the sale of the home at closing, so you rarely need to bring cash to closing.

 

Common fees paid by the seller include ...

  1. Real estate commissions for listing agent and selling agent

  2. Owner's title insurance policy

  3. One-half of the sub-escrow fee

  4. Seller's escrow fee and processing fee

  5. Homeowner's transfer fee

  6. Documentary transfer tax

  7. City transfer or conveyance tax

  8. Loan fees required by the buyer's lender (FHA/VA only)

  9. Document preparation fee for deed

  10. Payoff all loans in seller's name

  11. Interest accrued to lender being paid off, statement fees, reconveyance fees and prepayment penalties

  12. Termite inspection, if specified in contract

  13. Termite work, if specified in contract

  14. Home warranty, if specified in contract

  15. Any judgements, tax liens, etc. against the seller

  16. Tax proration (for any taxes unpaid at the closing)

  17. Any unpaid homeowner's dues

  18. Recording charges to clear all documents of record against seller

  19. Any bonds or assessments, if specified in contract

  20. Any and all delinquent taxes

  21. Notary fees

  22. Natural Hazards Report

  23. Messenger fees

Some of these fees can vary depending on the contract, so it's important to have a trusted agent by your side when selling your home and negotiating the contract.