Seller’s Closing Costs: Who Pays for What?

When selling a property, understanding the closing costs you’ll incur is crucial to managing your finances and planning for a successful sale. The distribution of costs between buyer and seller can vary, but there are common fees that sellers typically pay. At Lakeside Escrow, we've outlined the key expenses sellers should anticipate, so you can prepare for a smooth closing process.

What closing costs should sellers anticipate, and can these expenses be negotiated?​

Sellers can expect to incur closing costs such as real estate agent commissions, which typically range from 4% to 6% of the home's sale price, and transfer taxes, which vary by location. Other potential expenses include title insurance, document preparation fees, and prorated property taxes. Many of these costs are negotiable; for instance, in some regions, sellers may agree to cover a portion of the buyer's closing costs to facilitate the sale. It's advisable to consult with a real estate professional to understand customary practices in your area and identify opportunities for negotiation. ​

 

The SELLER is typically responsible for the following closing expenses:

Standard CLTA Owner’s Title Insurance

Real Estate Commission Fees

Document Preparation Fees
(for the deed)

Documentary Transfer Tax
(typically $1.10 per $1,000 of the sales price)

Any City Transfer or Conveyance Tax
(as specified in the contract)

FHA or VA Loan Fees
required by the Buyer’s lender

Loan Payoff
(all loans in the seller's name or the existing loan balance if assumed by the buyer)

Interest Accrued to the Lender Being Paid Off
(including statement fees, reconveyance fees, and any prepayment penalties)

Termite Inspection
(if specified in the contract)

Termite Treatment
(if required by the contract)

Home Warranty
(if outlined in the contract)

Messenger, Overnight, or Courier Fees
(if used)

Any Judgments, Tax Liens, or Similar Encumbrances
against the seller

Recording Charges
to clear any documents recorded against the seller

Tax Prorations
for any unpaid taxes at the time of the transfer of title

Unpaid Homeowners’ Dues

Bonds or Assessments
(as specified in the contract)

Delinquent Taxes

Notary Fees

Escrow Fees
(50% of the total fee)

Seller’s Portion of Sub-Escrow Fees

Demand Fees

Solar Transfer Fees
(if applicable and addressed in the RPA)

This list provides a general guideline for the seller’s responsibilities at closing. However, actual costs may vary based on the specific terms of the sale agreement.

I recently completed a real estate transaction with Lakeside Escrow, and their professionalism blew me away. From start to finish, their team was incredibly responsive and took the time to explain every detail. I never felt rushed, and every question I had was answered promptly. The entire process felt seamless, and I had total peace of mind knowing my funds were secure. Highly recommend!

Arthur B.

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