Seller Closing Cost Calculator 2021

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Calculate Your Closing Costs

Home Price:
$
Real Estate Agent Commission
$
Title, Escrow, Notary, & Transfer Tax
$
Remaining Mortgage/Equity Loans
$
Seller Concession
$
Required Repairs
$
Total Closing Costs:
$24,760
$24,760
Total Closing Costs
Real Estate Agent Commission
$
Title, Escrow, Notary, & Transfer Tax
$
Remaining Mortgage/Equity Loans
$
Seller Concession
$
Required Repairs
$
Total Closing Costs:
$24,760
Net Proceeds:
$375,240.00

Our seller closing cost calculator provides the total amount that you will receive from selling your home once all closing and miscellaneous costs have been deducted. Our calculator uses the estimated home selling price, and various costs such as the real estate agent commission, closing expenses, remaining mortgage balance, and seller discounts.

What are closing costs?

Closing costs are the fees paid by both the seller and the buyer of the home for various services that are required before closing on the home. Sellers have different expenses than buyers of the home. This calculator helps sellers determine their total proceeds once closing costs have been deducted.

If you are a buyer and are interested in closing costs, check out our closing cost calculator.

How much are seller closing costs?

Seller closing costs can range from 8% to 10% of the home selling price. On a $500,000 home, this can be between $40,000 and $50,000 in closing costs. Although this is a lot, there are several categories of expenses that can change based on location, negotiation, and specific situations. Using our calculator you can get an accurate value based on your circumstances.

What are seller closing costs?

There are various sets of fees that the seller has to pay rather than one lump payment. These include:

  1. Real Estate Agent Commission – This is by far the largest expense required at closing. Real estate agent fees can range anywhere from 3% to 6% of the home price, depending on the location. For example, in New York the real estate agent commission is 6%, a $500,000 home would have a $30,000 commission, which is split between the buyer and seller agents. Your agent takes over all aspects of the selling process, including finding potential buyers, valuation, staging, and closing.
  2. Title, escrow, notary, and transfer tax – These are known as closing costs and include the cost of paying for title insurance, escrow, and notary fee. Transfer taxes are imposed by the local government to transfer ownership to the buyer. On average all these expenses are usually 1% of the home sale price.
  3. Remaining Mortgage/Equity Loans – If you have any outstanding mortgage balance, or if you took a home equity line of credit or loan, all these dues will have to be paid back prior to closing.
  4. Seller Concession – In certain cases, the seller may offer discounts to the buyer in order for the deal to go through. This could be in the form of reduced price or partial payment of buyer closing costs.
  5. Required Repairs – If the home requires any major repairs or cleaning prior to closing, those costs must be deducted from the home sale price.

How to calculate closing costs for the seller?

Closing costs for the seller are determined by summing up all the expenses that are made at closing. This value is subtracted from the estimated home selling price to get the actual amount you will receive once the house is sold.

Example: Sale of a $400K Home

1. Estimated Home Sale Price - $400,000

2. Closing Costs:

  1. Real Estate Agent Commission - $20,000 (5%)
  2. Title, escrow, notary, and transfer tax - $4,000 (1%)
  3. Remaining Mortgage/Equity Loans - $3,000
  4. Seller Concession - $0
  5. Required repairs - $1,000

Total Closing Costs - $28,000

Net Proceeds Received - $372,000 ($400,000 - $28,000)

How to reduce closing costs?

Closing costs are not the same for everyone and can change based on your situation. There are certain ways that can be used to reduce the closing costs:

  1. Shopping Around For Several Service Providers: Most states allow title and escrow companies to set their own price points and payments, therefore, you can negotiate and try to get a much better price than the stated price. You can reach out to multiple companies and choose the best one based on price and service.
  2. Title Insurance Reissue Rate: If you have lived in the home for a few years and are selling, you can get a reduced rate for the owner’s title insurance policy.
  3. For Sale By Owner (FSBO): Instead of hiring a seller real estate agent and paying them 3% of the sale price, you can choose to sell the home yourself online or through personal means. However, you will have to handle all aspects of the process from staging to closing.