The Short Answer
When you sell a home, you typically won’t get to keep every single penny. The reason is, homeowners usually have some expenses that need to be returned before they can count their total ROI(Return on Investment). The good news is that when you work with a good realtors, they take care of those transactions for you and get you an estimate of the proceeds. You won’t be paying and making all these different checks for various purposes. Instead, an escrow company processes the transaction and pays everyone and you. In addition, you should receive a seller closing statement, this is a document that tracks all of the payments, where they came from, and where they are going. More specifically, it shows you the sale price, your expenses, and your final profits from the final sale.
Closing costs for sellers can be anywhere between 8–10% of the final sale price on average. However, this is strictly based on your agreement with the seller and the vendors you use throughout the selling and closing process. Your closing costs can vary, but here are some of the most common fees:
- Title Search
- Title Insurance
- Escrow Fee
- Tax Prorations
- HOA Prorations
- Outstanding amounts owed
Paying Your Remaining Mortgage Balance
Most sellers don’t own the property outside of their mortgage loan, therefore, you will have to pay off your current mortgage first. Before you officially close, your lender will provide the title company with a loan payoff notice. This document provides you with what your final payment will be, this includes any fees and prepayment penalties.