When you list your home for sale in Aspen and a buyer comes in, you’ll have to pay closing costs – but those costs can vary based the sales price and a variety of other factors. So what can you expect to pay? This guide to five closing costs to watch for when you sell a home in Aspen explains.
5 Closing Costs to Watch for When You Sell Your Home in Aspen
Your REALTOR® will talk to you about your closing costs, and so will your lender. But as a general rule, these are five closing costs that sellers are generally responsible for paying:
- Real estate commissions
- Loan payoff costs or prepayment penalties
- Transfer taxes and recording fees
- Title insurance
- Attorney’s fees
Your fees can vary based on several factors, but you’ll know exactly what you’re paying for before you sign the dotted line. Here’s a closer look at each.
Seller’s Closing Cost #1: Real Estate Commissions
When you sell your home, you’re typically responsible for paying real estate commissions to the agents who handled the transaction. That includes your agent and the buyer’s agent. Most often, these commissions add up to between 5 and 6 percent of a home’s sales price. The exact division of commission is up to the agents and their brokers – and agents generally have to split their commission with their broker.
Seller’s Closing Cost #2: Loan Payoff Costs and Prepayment Penalties
If you were to call your lender right now to ask for your loan payoff amount, it would probably be a little bit higher than what you saw on your last mortgage statement. That’s because the payoff includes prorated interest charges. (If you want an accurate picture of how much you need to give your lender to pay off your home, don’t go by the mortgage statement! Make the call instead.)
Sometimes when a person sells a home, they’re responsible for a “prepayment penalty.” This penalty is, in a way, a punishment for paying the loan off before the lender could collect the full amount of interest it was counting on earning from you. Some types of loans – like VA loans – don’t allow lenders to charge people for paying loans off early.
And if you have a home equity line of credit, know that you’ll have to pay that off in full before you can sell your home.
Seller’s Closing Cost #3: Transfer Taxes and Recording Fees
State and local governments impose transfer taxes and recording fees when someone transfers the title to a home. Yours will most likely be different than your neighbor’s, so it’s important that you have a talk with your REALTOR® about what kind of payment you can expect.
Seller’s Closing Cost #4: Title Insurance
In many cases, sellers pay for the buyer’s title insurance premium. Costs for title insurance vary widely, but if the buyer asks you to pay, it may be worth considering. Generally, it can range between a few hundred dollars to around $1,000.
Seller’s Closing Cost #5: Attorney’s Fees
If an attorney is representing you during your real estate transaction, you’ll have to pay his or her fees at closing. In many cases, attorneys are willing to negotiate on real estate fees – so if you’re so inclined, don’t be afraid to ask.
Are You Selling or Buying a Home in Aspen?
If you’re ready to sell your home in Aspen, Woody Creek, Basalt, Carbondale or Snowmass, we may be able to help you.
Get in touch with us right now to find out how much your home is worth – and discover how we’ll be able to help you sell it quickly and for top dollar.
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