What Are the Seller's Closing Cost?
BY KAPINA LANSDALE
Are you thinking about selling your home? Not sure how much it might cost you? Before selling your property it’s important to have a good understanding of what cost may entail during the transaction. During this transaction, there will be costs associated for both the buyer and seller.
As a seller, educating yourself now for upcoming costs helps create a smoother transaction.
Here are some of the typical closing costs associated with selling a home or condo in Hawai’i.
“As a seller, educating yourself now for upcoming costs helps create a smoother transaction.“
Seller Closing Cost
- Mortgage Loans – Remaining mortgage loan or loans will be paid off in full through escrow at the time of settlement.
- Real Estate Commissions – 6% of the total purchase price. 3% to the Buyers’ Agent and 3% to the Sellers’ Agent.
- Title Insurance – Protects against liens, claims, filing errors against the title. Seller pays 60% and Buyer pays 40%.
- Escrow Fees – Fees paid to a title company to perform the title search, preparing paperwork, notary, etc. for closing. Seller pays 50% and Buyer pays 50%.
- Transfer Taxes or Recording Fees – These are taxes imposed by the local government or state to transfer title
- Attorney Fees – Fees paid to your attorney to represent you at the settlement.
- Recording Fees – Fees paid to the Bureau of Conveyances to record the new owner in State documents.
- County Transfer Taxes (Conveyance Tax) – This is the tax on the sales price of your home or condo.
- Condo Documents – Documents pertaining to the condo building.
- Leasehold Documents – Lease-related documents.
- Termite Inspection – Typically the seller pays for the termite inspection of the home and remediation.
- Repairs – Repair bills or credit for repairs for items found during a Home Inspection or lender required repairs for a buyer to obtain a loan.
- Staking/Survey – This verifies the boundaries and if there are any encroachments on the property.
- Cleaning Costs – A professional cleaning company should be hired to clean the home after the seller’s items are removed.
Liens – If there are any unpaid prorated property taxes, and homeowner association dues, this will be included in the settlement fees.
Choosing a Realtor
As a Real Estate Professional, I strive to not only guide you through, but also educate you during this transaction. As you are entrusting me with one of the most important decisions in life, I pride myself in making sure that both myself and the whole team is always representing you and having your best interest our priority.
Want to Learn More?
For more information on selling your home or for a Free CMA to see what your home is worth, please Contact me. Want more helpful tips and island information Join my Newsletter and be the first to get notified on new updates.