When you are making the decision to sell your home, you must be well aware of the closing costs you will have to deal with this resolution.
Legal fees - home sellers often appoint an attorney to represent them during the sale of property. At other instances, the real estate broker they have hired will take care of the functions which are not a part of practicing law, such as finishing a contract of sale as well as attending and preparing for the closing. The job of the lawyer is to protect your interest at every step possible.
Mortgage Fees - this is a discharge fee, charged if you had a mortgage on the property you are selling. prior to the closing date, you will ask your lender for a payoff statement which will lay down the amount that will pay the mortgage. If your lender has been escrowing an amount to pay your homeowner's insurance and real estate taxes, they may take away this money from the total payment you will make. Other lenders may send you a check to refund the amount after the payment of the mortgage. also, the settlement agent may also charge a fee for getting the Discharge of Mortgage.
Additionally, the mortgage company might take a penalty payment of either a loss of interest fee or interest for three months of you discharge before maturity. However, this may be waived if you plan to take out another mortgage equal to or more than the current one.
Real Estate Fees – This is calculated as a percentage of the selling price of your house and is agreed upon in the listing contract. it is most likely that you will have signed an agreement stating the fee for the agent when you hired his services.
Home Inspection and Repairs - When the buyer is looking at your house, it is most likely that they will hire a home inspection specialist to take a look at your house for structural problems or any glitches in the cooling, heating and other electrical systems. Then they will dispatch a report to the attorney of the buyer or their real estate broker who will in turn forward it to your real estate agent or attorney requesting you to make certain repairs. These repairs should only be made if the buyer raises the issue due to the main reason that if one had a problem; it is most likely that other buyers will also find it problematic. These repairs usually include problems with leakage in the roof, mold, termites, boiler and water heater issues. These may be costly and your realtor should be able to refer you to expert contractors who can give you an estimated amount for these costs.
Unfortunately for sellers, the closing costs always end up being higher than what they had anticipated. The good this is that your real estate broker or attorney will be there to direct you through the entire process in order to ensure that you are not completely taken aback by the amount.