As a home seller in Northern VA, you must be ready for closing costs. These costs come with selling your home and are due at closing. As long as you have sufficient equity in the property, the costs will come from the sale proceeds.
What do Northern Virginia home sellers need to know about closing costs? Read this post to find out!
Closing Costs for a Home Seller in Northern VA
Agent Commissions
Agent commissions are not closing costs. However, the seller needs to pay them at closing. Along with that, they are typically the most significant cost for sellers. Naturally, your listing agent will split the commission with the buyer’s agent. The average commission in Virginia is between five and six percent.
Taxes
Sellers will also have to cover various taxes at closing. Transfer taxes are a typical closing cost for home sellers in Virginia. The transfer tax in Virginia is $3.50 for every $1,000. However, the buyer and seller usually split this cost. You may also have various county and local taxes that come with transferring title. For example, there might be taxes for recording documents.
Title Fees
There are also several fees associated with the property title. Sellers will need to pay for a title examination. The title examination ensures that the title has no defects and that the seller has the right to transfer ownership. Along with that, the seller will also need to pay for title insurance. Title insurance protects the lender’s interest if issues arise after the sale.
Existing Mortgage
If you’ve paid the entire mortgage on the property, you won’t need to worry about this cost. However, people often sell homes before paying the whole mortgage. Typically, this money will come from the sale proceeds before they land in your bank account. While you can sell the property before paying the mortgage, you must settle it at closing.
Buyer’s Costs
The buyer will also have various closing costs to cover. It could be loan origination fees, appraisal fees, inspections, credit reports, and attorney fees. Some buyers might try to negotiate payment of closing costs. The seller has no obligation to pay closing costs for buyers, but it can help close a sale in a buyer’s market.
Do you want to sell your home without paying as much at closing? The team from Only Pay For What You Need Real Estate can help. We offer low-cost real estate services for buyers and sellers. Reach out now to learn more about how we can help you save money.
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