Enrique V Urdaneta


Both buyers and sellers have closing costs associated with the transaction. Therefore, it is important to have an estimate of the expenses you will have to pay before listing the property for sale, to determine the amount you can count on once the transaction is complete.


  1. Mortgage Balances: The balance of the existing loan, second mortgage balance, and home equity lines of credit.
  2. Loan Payoff Fee: Administrative fee charged by the lender to pay off the loan.
  3. Debt Release: Money owed to contractors and/or due to court judgments or property taxes. These amounts must be paid before closing.
  4. Early Payment Penalty: Some loans have a penalty for early repayment of the debt.
  5. Recording Fees: Fees to document that the debts have been fully paid.
  6. Commissions: Fees paid to the real estate brokers involved in the transaction, typically 6% of the sale price and paid entirely by the seller.
  7. Notary Fees: Fees charged by the notary to verify the identity of the signers of the document.
  8. Escrow Costs: Custody agents receive the money from the lending institution, pay all costs, collect deposits, and distribute the proceeds to the lender/seller.
  9. Title Search Costs: Proof that the seller has the legal right to sell the house. Title companies search public records and produce an insurance commitment that certifies that the seller owns the house and indicates details of any liens or other rights affecting the title to the house.
  10. Seller Concessions: Amount the seller agrees to give to help the buyer pay their closing costs.
  11. Repairs: Work that the seller must complete (if applicable) before the sale, either as a result of buyer negotiation or as a condition of the lender.
  12. Home Warranty: Protection plan for the buyer's first year in the home.
  13. Termite Warranty: Documentation used in some parts of the country indicating that the house is free of termites.

HOW TO ESTIMATE CLOSING COSTS For practical purposes, closing costs for the seller can be estimated as follows:

  • 5% of the sale price, PLUS
  • Accrued property taxes to date, PLUS
  • Mortgages and/or lines of credit existing on the property, PLUS
  • Commissions (typically 6% of the sale price)


Enrique Vicente Urdaneta

Real Estate Advisor | eXp Realty | EVU Luxury Homes


[email protected]


Disclaimer: The information presented in this article is intended to provide a general understanding of the topic. However, please note that I am a real estate agent, not a lawyer, accountant, tax, or financial advisor. This content should not be taken as legal, tax, accounting, or financial advice. The laws and regulations related to this topic can be complex and may change or expand in the future. Therefore, it is crucial to consult with a qualified professional, such as a specialized financial or tax advisor, before making any decision based on this information. As a real estate agent, I can provide various options and professional guidance related to the real estate aspects of your investment strategy, and for matters related to tax implications, legal issues, and financial planning, please consult with the appropriate professionals, which whom I have allies I can refer.

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