Understanding Closing Costs for Sellers

Before you sell your home, it's important to understand the costs involved.  Some are obvious, but others may be unexpected.  Here's a list of what you will encounter.  This spreadsheet will help calculate your actual costs (make a copy for yourself if you'd like).  

Costs

Payoffs:  Removing all liens from the property

• 1st mortgage 

• 2nd mortgage

• HOA liens

• Mechanics’ liens

Brokerage Fees:

• Listing Fee:  the fee you pay to Homesmart & Maria

• Selling Fee:  the fee you pay to the Buyer’s Agent for bringing the buyer

• Transaction Fee:  the fee Homesmart charges for overseeing the transaction

Title costs:

• Title Insurance:  A title company will issue your Buyer an insurance policy that guarantees that no liens will be transferred to them after the sale of your property.  In Colorado, the seller traditionally pays for this fee.  

• Closing Fee:  The fee charged to sit at the closing table and have the title company prepare the paperwork, pay off your mortgage, file the deeds with the county, pay off water/sewer bills, and conduct the closing.

• HOA docs:  Your HOA will charge a fee to provide a “status letter” required by your Buyer’s lender as well as to provide comprehensive HOA information that your Buyer will require.

Possible costs:

• Inspection concessions

• Appraisal concessions

Money held by title at closing, but will be returned prorated:

• Taxes

• Water/sewer bill