What Fees Are Included in a Seller’s Closing Costs?

Minnesota Real Estate Podcast With Chad and Sara Huebener

Today, we’re going to over the standard closing cost that a seller can expect to pay when selling their home. We’re going to going through a quick, estimated seller’s net sheet that we present to all of our sellers and for anybody who requests a market analysis from us, breaking it down into different categories. 1. Governmental costs. There will be a conservation fee, which our title companies like to call “feeding the ducks.” There are also recording fees, which are dependent on how many mortgages you have and anything that needs to be recorded. Additionally, there is the state deed tax, which is $3.30 per $1,000 of the sale price. 2. Title costs. These are fixed fees that the title company will charge you to close the file, run the payoffs, do searches, etc. Included in this fee might be a courier fee, if your lender requires a payment to be overnighted. 3. Broker fees. These are broken up with commissions and broker admin fees. “A buyer may sometimes ask the seller to contribute to the buyer’s closing costs.” 4. Miscellaneous costs.These may pertain to acreage properties if they’re using a private well or septic system, which may require inspections. Home warranty fees are also typically paid for by the seller. If you live in an HOA, the seller will have to order what’s called a resale disclosure package, which is sent to the buyer. Additionally, a buyer may sometimes ask the seller to contribute to the buyer’s closing costs; this is a negotiable item which we counsel our sellers through, depending on the type of buyer and the type of loan they’re taking out. 5. Fee proration.Association fees and property taxes are prorated. Above and beyond the commission rate that is negotiated, you can expect to pay about a half of a percent, with three quarters of a percent of the sales price in standard, fixed closing costs. If you have any questions about a net sheet or closing costs, feel free to reach out to us. We’d be happy to run a market analysis and prepare a net sheet for you, as well as walk you through them.