Selling a home comes with its own set of expenses, and closing costs are a significant part of the process. If you’re planning to sell your house in Asheville, NC, understanding these costs can help you better prepare and ensure a smoother transaction. Here’s a breakdown of what sellers can typically expect to pay in closing costs in the Asheville area.
1. Real Estate Agent Commissions
Real estate agent commissions are often the largest closing cost for sellers. In Asheville, this fee typically ranges from 5% to 6% of the home’s sale price, split between the buyer’s and seller’s agents. For example, if your home sells for $400,000, you could pay $20,000 to $24,000 in commissions.
2. Transfer Taxes and Recording Fees
North Carolina imposes a real estate transfer tax of $1 per $500 of the sale price. For a $400,000 home, this amounts to $800. Additionally, you may need to cover recording fees to update property ownership records with the county.
3. Title Insurance
In many cases, sellers in Asheville are expected to pay for the buyer’s owner’s title insurance policy. This policy protects the buyer from potential title disputes. The cost varies but typically ranges from $1,000 to $3,000, depending on the property’s value.
4. Home Warranty
To attract buyers, some sellers offer a home warranty that covers repairs or replacements for major systems and appliances during the first year of ownership. A typical home warranty costs around $500 to $700.
5. Repairs and Concessions
After a home inspection, buyers may request repairs or concessions. Depending on the condition of your home, you might need to spend $1,000 to $10,000 or more to address issues or provide a credit to the buyer.
6. Attorney Fees
North Carolina requires an attorney to oversee real estate transactions. Sellers are typically responsible for their own legal fees, which can range from $500 to $1,500.
7. Prorated Property Taxes
Sellers must pay their share of property taxes up to the closing date. For example, if you close halfway through the year, you’ll need to pay half of the annual tax bill. Property tax rates in Asheville vary but are generally around 0.65% to 1% of the home’s assessed value.
8. Mortgage Payoff and Prepayment Penalties
If you still owe money on your mortgage, the remaining balance will be deducted from your sale proceeds. Some lenders may also charge a prepayment penalty, so check your loan agreement.
9. Miscellaneous Fees
Other costs to consider include:
- HOA Fees: If your property is part of a homeowners’ association, you may need to pay outstanding dues or transfer fees.
- Courier and Wire Fees: These cover the cost of transferring documents and funds, typically around $50 to $200.
- Seller Concessions: If you agree to help with the buyer’s closing costs, this amount will vary based on your negotiations.
10. Final Thoughts
While closing costs can add up, being aware of these expenses allows you to plan ahead and avoid surprises at the closing table. Partnering with a real estate investor in Asheville can help you avoid these costs and potentially negotiate better terms. Ready to sell your home? Call Carolinas Homebuyers at (980) 554-5524 and take the first step toward a successful sale!