Seller Closing Costs

Seller Closing Costsseller side closing cots

Sellers want to know how much their closing costs are so they can figure out how much they will net on a potential sale. Typical seller side closing costs range from 6%-7% of the sale price as a rough rule of thumb. The biggest closing cost for sellers is the real estate commissions- they range between 5%-6% of the sale price.

A real estate agent will be able to prepare a ‘net sheet’ with line items that estimates the total closing costs of a sale. Ask your real estate agent to write one up if you’d like an estimate.

At closing, Escrow is required by law to prepare a HUD-1 final closing statement. This document will have all the actual closing costs.

Here is an estimate of the different seller closing costs:

Prelisting Costs:

(Optional) Home Inspection ($400) – it is becoming an increasingly popular trend in Los Angeles to have a home inspection done prior to listing. That way you as a seller you are aware of any problems that a buyer might find and can either disclose them up front for an as is sale or repair them before going on the market.

Staging

Any Remodeling or Updating (Price Varies)

Cleaning ($30/hr for maid)

In Escrow Cost:

Termite Inspection ($150 + Section 1 costs) can be done before you list or in escrow.

Retrofit–  if you bought your property or it was built in the last 5-10 years it will probably already be retrofitted, if not this will be an expense.

9A Report $80

Natural Hazard Disclosures $150

Title Insurance Policy ($3,000 to $3,500)

Seller Side Escrow Fee ($250 base + $1.75 per $1,000 of purchase price)

City Transfer Tax ($4.40 x $1,000 sales price city of LA)

Documentary Transfer Tax ($1.10 x $1,000)

Lender title Insurance  ($1,500-$2,500)

Proration on Property tax

Home Warranty ($400-$500)

Have more questions or need help closing your sale? Let’s chat. 

 

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