I live in NYC and I will be selling my house to a friend of my fathers very soon. I was wondering how much would the closing costs for the seller be? I’ve heard from friends of mine it could be as high as 5-7% Now on a house of 500k or more thats alot of money. Could someone explain this to me?
Closing costs for the seller can be quite high, especially if you are using a real estate agent.
Some of your costs as a seller can include:
the survey
Title insurance
Recorded release of mortgage,
Agent’s commission
property transfer tax
state capital gains tax (if applicable, which it might be on a $500K home)
Credit to the buyer of unpaid real estate taxes for the prior or current year – this can be a lot depending on when you sell, and how often your taxes are paid.
Attorney’s fee
And some other negotiable fees, sometimes seller’s are required to do a termite inspection, or crediting closing costs to buyers.
state capital gains tax (if applicable, which it might be on a $500K home) We don’t have state Cap Gain taxes
Credit to the buyer of unpaid real estate taxes for the prior or current year – this can be a lot depending on when you sell, and how often your taxes are paid. $3000