Learning Center

Sellers Costs at Closing

Now that you've made it to the closing, what kind of fees will you as a seller be responsible for?If you have listed or co-broked your property with an agent, the commission will certainly be the largest expense by far. The commission percentage can vary, and may be determined by applying a certain percentage of the selling price of the home. Another type of broker related fee is known as a flat fee listing. In this case you have agreed to pay a flat fee that is not affected or determined by the sale price of the home.

In all real estate transactions, whether you have worked with an agent, or are strictly a for sale by owner deal, certain other fees will apply. The largest of these expenses will be the NYS Transfer Tax due at the time that the deed is filed. This tax is based on the purchase price of the property. The rate is $4.00 per thousand. So for example if the purchase price is $200,000.00 X .0004 = $800.00. The deed costs $28.00 plus $3.00 per page to record. For example: If the deed is two sided, the fee would be $34.00. The TP584 Tax Affidavit costs $50.00. The RP5217 form costs $75.00 to file.

Other charges incurred by the seller at closing may include any seller concessions agreed upon between the buyer and the seller prior to closing. This may include such things as the seller giving $1000 to the buyer for a new pool liner, or $300 for a new auto garage door opener.

If the seller has been advised not to file a Property Condition Disclosure Form, a fee will be paid to the buyer by the seller at closing (usually $500). By not utilizing the disclosure form, the seller is protecting themselves from being sued by the buyer. The buyer is aware of the potential for defects on the property and has agreed not to hold the seller responsible for the defects in lieu of a fee.

Attorney fees will also be settled at the closing. In most cases, both the buyer and the seller will have an attorney representing them. The seller may also, or in place of, have a title company representing them. The general rule of real estate thumb is east of the Mississippi, seller uses and attorney, and west of the Mississippi a title company is more commonly used.

A good approach would be to check with your attorney a few days before your scheduled closing to get a solid estimate of the fees you will be responsible for. Being well prepared for your real estate closing will not only facilitate the process but also make it an occasion to celebrate!

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