Home Selling in Tacoma>Question Details

lorelibarks, Home Seller in Tacoma, WA

What are typical SELLER's total closing costs on a $139,000 home in Tacoma?

Asked by lorelibarks, Tacoma, WA Sat Jul 6, 2013

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Hello, the typical closing costs for a seller in a transaction is what the commission rate is, and usually 3% of the purchase price of the home for closing. So lets say commission is 6% and 3% for closing you are looking at $12,510 give or take. Keep in mind this is just an estimate.
Will Warren
Windermere Professional Partners
(253) 441-1160
willwarren@windermere.com
1 vote Thank Flag Link Sat Jul 6, 2013
Your closing costs as a seller would include title insurance policy as well as your portion of escrow expenses. You also will have just under 2% in taxes you must pay on the sale of the home ( not on your profit, on the sales price) There also may be prorations of taxes, HOA dues and so on which may either mean money back or money out depending upon when you sell.

Then of course you will also have commissions and these are not fixed. You will be paying for representation and marketing from your own agent and you will also pay for the buyer to have representation in the sale as well.

In our current market many buyers will also ask for up to 3% seller assisted closing costs. Before you thing that you just don't want to pay that, realize you will rule out many buyers is you are unwilling, you can negotiate and add it on top of the selling price you offer your home at so long as that total will be supported by the appraisal and realize it is likely you will be asked to pay some or all of the closing for your buyer.

In all, be prepared to pay between 9-10% if you do not contribute to buyer's closing costs in cost of sale and if you do contribute to buyer's closing costs be prepared to do between 11.75-13% of total sales price as your cost of sale.
0 votes Thank Flag Link Mon Jul 8, 2013
Eddie, the taxes and HOA are pro-rated, so the seller doesn't pay them through the end of the year. Those would be the buyer's responsibility. Insurance would end at closing, so their might be a refund if it was paid annually. Were you thinking of buyer's closing costs?

I was trying to avoid specifics because they can be confusing and misleading, but bringing up taxes is a good thing. I wouldn't ordinarily consider it a closing cost, but if a seller is behind two years on paying taxes, they would need to pay those out of the sales proceeds (or other funds) to be able to close the sale. Conversely, if the seller paid a full year of tax at the beginning of the year, they could have a significant credit on the closing statement. But presumably a seller would know whether they were delinquent (or paid ahead) on an item and take that into account.
0 votes Thank Flag Link Sun Jul 7, 2013
Property tax's times the number of month left in the Year
insurance times the number of month left in the Year
HOA times the number of month left in the Year

closing cost
title
escrow about 50%
0 votes Thank Flag Link Sun Jul 7, 2013
I like Will's answer for its simplicity. 3% plus commission is pretty accurate, and if anything slightly overstates the closing costs. That's the system I've always used (both back when I was an attorney and as a real estate agent).
0 votes Thank Flag Link Sun Jul 7, 2013
Hi Loreli,

That is a good question. Typically Seller's fees include both sides of the real estate commission of 6-7%, sales transfer tax to the state of 1.78% along with various title and escrow related fees. Usually the total is between 8.5 and 9.5%, depending upon the details of the sale. Count in more if the Seller decides to pay a buyer's closing costs which are typically 3% of the sales price.

Get in touch with me personally if I can be of further help.

Meg O Harrison
http://www.mega-pros.com
253. 961. 3613
0 votes Thank Flag Link Sat Jul 6, 2013
you also have 1.78% excise tax, recording fees, title and escrow., also any outstanding real estate taxes pro-rated to the closing date.

see this example- need to add any real estate taxes due also.

Estimated Seller's Net Proceeds
Prepared: July 6, 2013

Prepared for: seller
tacoma, wa

The Information on this estimated net sheet is deemed reliable, but is not guaranteed. The actual costs with respect to each transaction will vary depending on the circumstances.

Selling Price $139,000.00
Closing Date: 8/5/2013

Real Estate Fees
Listing Office (3.0) $4,170.00
Selling Office (3.0) $4,170.00

Settlement Costs
Escrow/Closing Fee (incl. tax) $486.28
Title Policy (incl. tax) $585.29
Prorated Property Tax $0.00
Excise Tax $2,474.20

Mortgage Costs
1st Mortgage Balance $0.00
1st Mortgage Prorated Interest (0.0%) 0
1st Mortgage Prepayment Penalty $0.00
2nd Mortgage Balance $0.00
2nd Mortgage Prorated Interest $0.00
2nd Mortgage Prepayment Penalty $0.00
Additional Payoff $0.00

Buyer's Cost Paid
Seller Paid Buyer Cost $0.00
Lender Requirement (FHA/VA) $0.00

Other Costs
Special Assessment $0.00
Document Preparation Fee $100.00
Recording Fee $80.00
Homeowners Association Fee $0.00
Home Warranty Policy $0.00
Pest Inspection $0.00

Extra Costs
reconveyance $200.00

Estimated Seller Costs $12,265.77

ESTIMATED NET PROCEEDS $126,734.23
0 votes Thank Flag Link Sat Jul 6, 2013
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