As the seller, there are some closing costs that you will want to plan for, but the good news is, they can be paid for out of the proceeds of your home sale. In addition to your agent commission, here is a list of fees that you can expect to pay:
Settlement fees: The title company that handles the title search and deed preparation will charge both the buyer and seller fees for this service. For the seller, these fees are usually less than $1,000.
Taxes: Your annual property taxes will be prorated at closing based on the closing date. If you already paid for your taxes for the year, you will be given back a credit for the portion of time that you will not won the home. If you haven’t already paid, you will only be charged for the portion of time that you did own the home. And remember, this is all paid for out of the proceeds of your home.
You will also have to pay a Grantors Tax and the Regional Congestion Relief Tax and the Regional WMATA Capital Contribution tax. These taxes and fees are based on a percentage of the sales price of your home.
For 2022, the current Grantors Tax Rate is $0.05/$500. And the Regional tax rate is $0.10/$100.
Mortgage Payoff Fees: If you are paying off a mortgage balance, there will be minimal fees for the payoff processing tracking service that will make sure the payoff is sent, received and released from the property. These fees combined are about $150.00
HOA Resale Packet: If you live in a community that has an HOA, you can pay for the cost of the Resale Packet at closing. The cost for this is usually $264.00.
Once you are under contract with a buyer, the Settlement Company can provide a Closing Cost estimate in advance so that you can plan accordingly.
As always, if you have any questions about the selling process, please reach out to schedule a no obligation consult.