A phrase that encompasses all the necessary charges involved in finalizing a real estate transaction is closing costs: Buyers and sellers both having closing costs to pay in finalizing the real estate transaction.
Closing costs vary across the country with various fees, and they can vary with each transaction.
Attorneys who specialize in real estate handle closings in North Carolina. Compared to other states, North Carolina’s closing costs are very reasonable. The sellers’ closing costs are a lot simpler and straightforward compared to the closing costs associated with purchasing a home.
Homes for Sale in Lexington, NC
Price Range $250,000 to $350,000
Homes for Sale in North Davidson County Area
Zip Codes: 27012, 27127 & 27107
Price Range $250,000 to $350,000
Typical List of Seller’s Closing Costs
- Attorney fee for seller document preparation
- Transfer Tax Stamps
- Pro-rations of property taxes, special assessments, and HOA fees
- Mortgage Payoff on Seller’s loan and courier or wire fee
- Negotiated Paid Closing Costs for Buyer
- Home Warranty Fee if included in the contract
- Staging Costs if applicable
- Real Estate Agent Commissions
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Seller Attorney Fees – There are seller documents that need to be prepared by an attorney. The Seller can use the same attorney as the buyer or hire another attorney to prepare their documents for closing. These attorney fees generally range from $150 to $250.
Tax Stamps – A transfer tax paid to the county for selling the property. In North Carolina, it is $2.00 per $1,000. For example, on a property selling for $200,000 (2 X 200), the transfer tax would be $400.
Pro-Rations – These items include property taxes, special assessments, and any HOA fees if they apply. Property taxes are prorated based on the number of days that the seller owned the property during the calendar year.
Mortgage Payoff – In most cases, the seller will still have an existing mortgage on the property. Their loan is paid off to provide clear title to the buyer. After the recording of the deed, the law office will either wire the required funds to the seller’s bank or send the funds by courier. There is usually a small charge for sending the wire or a courier fee charge.
Negotiated Seller Closing Cost for Buyer – In negotiating the contract on the property, the seller agreed to pay a portion of the buyer’s closing costs.
Home Warranty – A home warranty is a service policy to protect the new owner against most flaws and breakdowns of major items in the home for a term of usually one year after the closing. The seller might have offered the home warranty when they listed the home. The buyer may also have included a home warranty in the offer to purchase. The cost usually ranges from $475 to $550.
Repair Service Providers – If there were contractors, who repaired certain items on the buyer’s repair list, the attorney will pay their invoices from seller’s funds at closing.
Staging Costs – It is starting to become popular for homeowners to hire companies to stage and prepare their home before the property is listed for sale. These companies offer numerous services which might include cleaning, decluttering, and making the home show well for the listing photographs. The average cost for this service varies by the services provided by the company. The fees can range from $300 to $2,000.
Real Estate Commissions – Typically the biggest cost the sellers pay at closing is the real estate commission. It is customary here in North Carolina that the seller pays the commission for both sides of the transaction. That means that when sellers list their property and sign the listing agreement, they agree to pay the listing company the commission. When the home closes, the listing company splits the commission with the buyer agent’s company.
Real Estate Firms in the area belong to the local board of Realtors and the local multiple listing service. These organizations have developed coop agreements between their membership to help market every firms’ listings and offer compensation to other members for bringing a buyer.
For example, with the typical commission at 6% on a home priced at $170,000, the commission would be $10,200.00. The listing company would receive $5,100.00 and the buying company the same amount.
The customary commission rate here in the Triad is usually 6% for residential homes and 10% for land. However, a listing agent’s commission is 100% negotiable and varies depending on experience, location, brokerage policy, and the services the agent offers.
In negotiating the commission, most realtors have a set commission rate they use to list a property because they are aware of the time and costs involved to list and market a home in their business.
Davidson County Home Valuation