What closing costs does the seller pay for?
In most cases, there are designated fees that are paid by the seller and by the buyer. Some things may be negotiated in the contract, but as the seller, you can generally expect to pay for the following items at closing:
Transfer taxes: For every $1,000 of the sales price, there is a $1.00 grantor tax in addition to a transfer tax of $.25 for every $1.00 of the sales price. There may be additional county or city tax fees.
Recording fees: After closing, the settlement agent will file the deed at the county. Each county has its own set of recording fees.
Realtor commissions: The commission for both the sales and listing agent is included in the property’s sales price. Expect to pay around 6% of the sales price in agent commission.
Attorney fees: In Virginia, a licensed attorney must be present at closing. These fees typically range from $500-$1,250.
Outstanding liens: If there are any unpaid liens on the property, they will be paid off at closing with your proceeds. This includes your mortgage payoff.
Buyer’s owner policy: Frequently, the seller will pay for the buyer’s title insurance, also called the owner’s policy.
Estoppel letter / HOA fees: If your home belongs to a homeowners association, you may need to pay for an estoppel letter that shows the dues and fees and potentially any transfer fees.
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