Many home owners wonder if the Buyer pays closing costs or if the Seller pays closing costs. The fact is, in a real estate transaction, both the buyer and seller are responsible for paying closing costs. In this particular post, we will cover the closing cost that the seller is responsible for. Since I am a Greenville South Carolina Realtor®, I will be using facts and seller costs that may only apply to Greenville SC real estate transactions, but it should give you a good idea of what to expect. If you are in another part of the country, you may need to contact a real estate attorney, a title company, or a good real estate agent to find out what the costs are for your home and your area.
In South Carolina, the seller is responsible for paying the deed stamps, also know as transfer fee. This fee is calculated based on the sales price, and the fee is $1.85 for every $500 of the sales price. The seller can also expect to pay the taxes, which are paid in arrears, up to the date of closing. Seller paid closing costs will also include any home warranty if the seller agreed to pay for it. Note that certain sellers or government agencies like HUD may have allowable and non-allowable closing costs that they pay.
If the home is being sold through a real estate broker, then seller costs will also include the brokerage commissions, and any other fees that the seller agreed to pay in the listing agreement. A home seller can also expect to pay a courier or wire transfer fee, which can range from about $20 to about $50 depending on your closing attorney. Another closing costs seller pays is document preparation fee. This can range from about $150 to about $250 depending on the closing attorney. The seller can also expect to pay a fee of around $10 for the deed release.
In today's market, many home buyers are asking the seller to pay some or all of their closing costs, which are known as seller concessions or seller contributions. The seller concessions can be used by the home buyer to cover any part of the closing costs that the buyer is responsible for. Of course these concessions are negotiable, so the seller can agree to pay all, part, or none of the buyer's closing costs. If the seller does decide to contribute to the buyer's closing costs, the amount that the seller agreed to now becomes part of the seller's closing costs. Note that certain sellers like HUD (Housing and Urban Development) may have some non-allowable closing costs that they will not pay for the buyer.
Unlike some areas that use title companies, in a Greenville real estate escrow settlement, an attorney usually handles the closing. Contact whomever is handling escrow settlement for your sale or in your area to find out your exact seller fees. There may also be a special assessment tax for non South Carolina resident sellers.
I hope this post has been helpful to give you an idea of what closing costs you can expect to pay when selling real estate. If you are looking to sell a home in Greenville or surrounding areas, contact me at 864-438-5050 for a free consultation or complete the form below.