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:
(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.
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
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.