“In some sort of crude sense which no vulgarity, no humor, no overstatement can quite extinguish, the physicists have known sin; and this is a knowledge which they cannot lose.” -
Closing Costs Are Not Just For Buyers
When entering into a listing agreement, I have always made it a practice to inform the seller of their estimated closing costs. I do this by reviewing with them a Sellers Net Sheet which is an estimated settlement statement that will project the bottom line to the seller, based on the listing price.
Real Estate Commissions: commissions for selling and/or buyer agents is paid out of the settlement at closing.
Mortgage payoff: most sellers have at least one mortgage outstanding on the property.
Seller Concessions: any concessions paid for by seller on behalf of the buyer: home warranty, buyer closing costs, funds for carpet replacement, etc.
Prorated Taxes: in South Carolina our real estate taxes are paid at the end of the year, therefore, prorated taxes are figured from January 1st through the date of closing.
Attorney Fees: attorney fees vary from $300 on up.
Deed Stamps: deed stamps are paid by the seller at closing in the amount of $3.70 per $1,000 of real estate sold. So if you sell a $200K house, you owe $740 in deed stamps. These monies are split between the State and the County. The state portion of the fee helps protect and preserve historical sites, provide affordable housing grants, conservation of green space, and helps meet the general obligations of the state. The county portion helps pay for the operation and administration of each local deed office.
Typically, the sellers’ largest portion of closing costs at closing are real estate commissions, seller concessions and deed stamps.
I'm a baby boomer who grew up during the 1950s in The Bronx, NY. In the mid 1960s my family relocated to Monmouth County, NJ where I graduated from high school and attended what is now known as Monmo....