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  • As homeowners prepare to sell their homes, they should be aware that they are not only required to pay their mortgage balance, they must also pay other fees at closing.

    Agent's Commission

    Real estate agents typically charge the sellers up to 7 percent of the final sales price to represent them and negotiate the sale of their home.

    Mortgage Pay-Off

    Sellers must pay off their mortgage along with more than $100 in fees to have their mortgage company or bank process the payoff documents and submit payoff information to the title company.

    Survey

    Some states require sellers to pay for a property survey. A licensed surveyor may charge as much as $600 for a survey which will serve as proof of where the land's boundary lines are located.

    Taxes

    At closing, last year's property taxes will be used to prorate the seller's taxes. Some counties and states may also charge sellers a real property transfer tax of about 1 percent of the home's selling price.

    Buyer's Closing Costs

    Some sellers may either negotiate or be required to pay for some of the buyer's closing costs. Buyers with Veterans Affairs or Federal Housing Administration financing may require the seller to pay the non-allowable closing costs which includes document preparation and tax service fees.

    Source:

    thinkglink: Seller Closing Costs Updated

    NYC.gov: Real Property Transfer Tax (RPTT)

    Mortgageknowledgebase: FHA Loan Regulation Closing Costs

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