Closing Costs for Sellers

Yes, there are closing costs for Sellers. Looking to sell? Make sure you factor in closing costs before putting your property on the market. Here’s more info from this realtor.com article.

Closing costs for sellers of real estate vary depending on which state you live in. Mississippi has some of the lowest closing costs, in comparison to other states. These costs won’t be cash out of the seller’s pocket; rather it will be deducted from the profit on your home—unless you are selling with very low equity on your mortgage.

What can a Seller expect to pay?
-Real Estate commissions. These are negotiable. They typically range in our area from 4% up to 6%.

-Deed preparation. This is the title search for liens and preparation of legal documents.

-Document filing fee with the municipality.

-Termite inspection. This is typically the last contingency and paid by the Seller.

-Seller attorney fees. Mississippi is one of several states that requires homebuyers/sellers to hire a real estate attorney to conduct closings.

-Taxes. These will be pro-rated with the Buyer. Usually 6 months to a year must be pre-paid in Mississippi because all taxes are in arears. Property taxes are a prepaid expense, meaning they need to be paid at closing and can’t be rolled into your home financing.

-HOA. If there is an HOA, expect them to be pro-rated at closing.

-Don’t forget about your mortgage pay-off, if you have a mortgage on the property. Your mortgage pay-off balance will often be a little higher than the remaining balance on your mortgage and even the buyer’s purchase price. This is because of lenders’ prorated interest on the mortgage.