How Much Will I Owe in Closing Costs?

Good question! The amounts vary from one transaction to the next, and some of the fees are based on the sale price. Below are some of the most common seller expenses at closing.

Common Real Estate Seller Closing Costs
 Tax Proration - credit to buyer for Jan 1 thru day prior to closing
 varies
 Commission to Discount Realty Works (if applicable)  $695
 Commission to other real estate agent (if applicable) 2-3%
 Deed and Transfer Preparation
 $75
 Title Insurance (varies; somewhat depends on sale price)
 $500
 WI Real estate Transfer Tax (depends on sale price)
 $3/1000
 Final Water/Sewer Escrow, if applicable
 $150
 Closing costs to buyer per offer (if applicable)
 varies
  
  

 

 

Example

A home is about to close. The sale price will be $225,000. It is a "by owner" sale (buyer not represented by a real estate agent), but the seller has opted to have Discount Realty Works oversee the paperwork and closing at a cost of $695. Annual taxes on the property are $4,000, and the closing will be on the 180th day of the year. Here is the seller's expense breakdown:

 

Tax Proration - $4,000/365*180
 $1972.60
 Commission to Discount Realty Works  $695
 Commission to other real estate agent  none
 Deed and Transfer Preparation
 $75
 Title Insurance (varies; somewhat depends on sale price)
 $600
 WI Real estate Transfer Tax ($3 per $1000)
 $775
 Final Water/Sewer Escrow, if applicable
 $150
 Closing costs to buyer per offer  none
 Total Expenses

 $4,267.60

 

Note:

The prorated real estate taxes are handled differently by different lenders. If you are currently escrowing real estate taxes, it may be possible for the $1972.60 to come straight from your escrow account to cover the tax proration expense. Otherwise, any remaining amount in your escrow account will be refunded to you after the closing (when the mortgage is paid off). So if you are escrowing your real estate taxes, that expense is washed out at some point.