Lindenhurst NY Home Selling - Q&A Corner - What Are My Closing Costs?
I never wait to answer this question when I meet with a homeowner. I already have the Seller Net Proceeds sheet ready to go.
- Mortgage Balance - This is the largest closing cost and has to be included.
- Commission - That goes without saying.
- Attorney's Fee - I figure this on the high side unless I know exactly what your Attorney charges.
- New York State Transfer Tax
- Property Condition Credit To Buyer - When listing a property for sale, you, the seller, may or may not complete this form. It's a form with a lot of questions concerning your knowledge about the condition of your home. Most Attorneys advise homeowners to not furnish this form to buyers. It poses a liability to you just in case you stated the plumbing is fine and six months down the road the plumbing is not and the new homeowners could sue you. Home inspections are conducted anyway. So, New York State says if you do not furnish this form to your buyers, then you owe them $500.00. This usually comes off the price of the home.
- Property Tax Reimbursement To Seller - In the Town of Babylon, property taxes are due twice a year. Let's say your taxes are $6,000. You paid them on 5/31/11 for the remainder of the year. You close on your home on 6/1/11. You are owed $3,000 since you paid for the rest of the year and you will not be living in the home. The buyers owe you the property taxes you already paid.
- Utility Reimbursement To Seller - Same thing applies like the property taxes. If you use oil or propane to heat your home, the buyers will reimburse you for the fuel they will be using when they move in and you already paid for it.
This chart will give you a good idea as to what you can expect to pay for closing costs when you sell your home.
It's also good to know what your closing costs are before you put your home on the market so there are no surprises. Homeowners these days rely on their net proceeds to buy another home.
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