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| CHATHAM VILLAGE REALTY, LLC - Chatham's Finest Real Estate Sales and Vacation Rentals |
What Are The Costs Associated With Selling My Home?
While you will certainly know the sale price of your home when you reach the closing table, there are several deductions that will be taken from the gross sale proceeds that you should be aware of. If you would like to view a sample settlement statement, which provides the financial details of the transaction at the closing (otherwise known as a HUD), you may view it here. (Seller's funds are accounted for on the right-hand side of the statement.) Below you will find a summary of some of these deductions, and what they will typically cost:
|
Description |
Amount Deducted | |
| Realtor Commission | Commissions are negotiated when you list your property, but generally run in the 4 to 6 percent range and are shared between the broker representing the buyer and the broker representing the seller. | |
| Mortgage Payoff | If you currently have a mortgage on your home, this must be paid off at the closing in order to transfer title to the property | |
| Capital Gains Taxes | Federal and State capital gains taxes may be due from the sale of your home, but these taxes would not due at the closing. Rather, a portion of your sale proceeds may be counted as income in the year in which the property is sold. Please consult your tax advisor for further clarification of these tax laws. | |
| Septic Inspection | If you have a private septic system, the system must be inspected at a cost of roughly $350, and it must pass inspection. | |
| New Septic System | Should your septic system not pass inspection and a completely new system must be installed, the costs of engineering and installing a new system can start at $6,000 and can be in excess of $10,000. (Because these costs can be so high, Chatham Village Realty recommends having your system inspected prior to negotiating on the sale of your home so that you can figure in the cost of a new system into your negotiating strategy.) | |
| State and County Taxes | State and county "tax stamps" are due from the seller at the closing, and total $5.70 per thousand dollars of the sale price. This means a home selling for $1,000,000.00 will have $5,700.00 due in tax stamps at the closing. | |
| Attorney's Fees | Fees will vary depending on your counsel, please consult your attorney for their fee schedule. | |
| Deed Recording Fees | Approximately $150. | |
| Smoke/CO Inspection Fee | $50 | |
| Final Water Read/Transfer Fee | Approximately $50 | |
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