Morgan Milzow & Ford, Realtors®
Emily Ford, Morgan Milzow & Ford, Realtors®Phone: (248) 722-4239
Email: [email protected]

Closing costs for sellers: A basic real estate guide

by Emily Ford 05/15/2024

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At the end of the real estate transaction come the closing costs. For seller costs, this can come to a significant amount of money on the closing date. However, the more you know about how closing costs are calculated, the better prepared you'll be for completing your home sale. Here are the most important things to know:

How do I calculate closing costs?

Closing costs for sellers vary based on multiple factors. Luckily, there are plenty of online calculators and other tools available for estimating your total closing costs. You'll need to combine property taxes, closing fees, title insurance fees, escrow fees and attorney fees with commissions paid to real estate agents.

Should you pay the buyer's closing costs?

Sometimes a seller can offer to cover the whole closing costs for the purchaser. This can help you win over a potential buyer in a competitive marketplace. A purchaser can ask for concessions in exchange for completing negotiations.

In some cases, buyers may ask for an offer to cover an issue found in a home inspection. Talk to your sales agent to find out if there's an alternative option to match your goals.

Average closing costs for sellers

Closing costs will vary from one sale to the next, but sellers can typically expect to pay around 8% to 10% of the home's total sale price. The largest part of this percentage comes from real estate agent commissions, which can be as high as 6% of the purchase price. Other cost variables include local tax rates, homeowners association fees, legal fees and title insurance fees.

When are closing costs due?

Your total seller closing costs will be due when you sign your final loan documents on the closing day. Make sure to have everything prepared to complete the transaction, as delays in closing can end up costing you more.

Once the seller pays closing costs and all the paperwork is signed, the sale is considered completed. Keep these basics for how and why sellers pay closing costs, and you'll be better prepared for every step of the process.

About the Author
Author

Emily Ford

 

My experience dates back to 2002 when I obtained my degree in Economics from Kalamazoo College and then immediately went to work as a sales manager for a 72 unit, new home development in Clarkston. I am in my 22nd year of full time residential real estate sales and real estate is my number one passion!

· I earned the "Top Producer" award at Morgan Milzow & Ford Realtors from 2007-2023

· My career accomplishments to date include over 1,000 homes sold and in excess of $300M in closed transactions

· I've been voted an Hour Magazine All-Star 2013-2023, an honor only given to the top 5% of Metro Detroit Real Estate Agents

· I'm a lifelong Clarkston resident & service all of Oakland County, parts of Genesee, Livingston and Macomb Counties, and my area knowledge, professionalism and real estate expertise is unparalleled

· As a top-producing & seasoned Realtor I have a strong support staff that handles all facets of your transaction and thus creates a concierge-like real estate process that is as seamless and hands on as it can be, delivering the service you deserve! “Stress free, worry free” is our mission & mantra

· We offer an unmatched marketing plan with preferred positioning on all major Internet outlets and social media, the best in professional photography, staging, handyman services, top-notch negotiating skills, excellent communication & much more!

· In 2022 I was awarded the Clarkston Chamber of Commerce Independence Women of the Year award for excellence in business and for my community contributions. In 2019 I received the Clarkston Community Businessperson of the Year Award. I’m also proud to have served my community as the Clarkston Area Chamber of Commerce President in 2018 & 2019. I'm a past recipient of the NOCBOR (North Oakland County Board of Realtors) Distinguished Service Award, nominated by my peers

· I consistently contribute to other, local charitable causes that are close to my heart including Tree of Dreams, benefitting Neighbor for Neighbor, SCAMP and Clarkston Schools

· My resume also includes being an investment property owner, landlord, land developer and home flipper. With my experience and expertise plus my valuable connections I can also offer temporary housing to clients ensuring the most harmonious moving transition possible!