Hold on: Some sellers pay these closing costs too
Depending on your home sale, you may owe additional closing costs, such as the following:
Attorney fees
If you have an attorney represent you at closing, you’ll pay for the attorney fees. An attorney may charge by the hour — $150 to $400, or they may charge a flat fee for outlined services such as preparing closing documents.
“Sometimes closing attorney’s fees are split. But a FSBO seller must pay wire fees,” Pitts says. Sellers are usually responsible for the cost of closing document preparation, as well.
Note that some states require a real estate attorney to be present at closing, whether you have an agent or not.
Seller concessions
Buyers may negotiate a financing concession, in which the seller pays part or all of the buyer’s closing costs. Often, a buyer negotiates for concessions, so they owe less in cash at the time of closing.
“At 3% of the sales price, that’s a substantial amount,” Pitt notes.
Lenders set limits on seller concessions depending on the loan type, whether the home is a primary or secondary residence, and the size of the down payment. For example, the Department of Housing and Urban Development caps seller concessions for FHA loans at 6% of the sale price.
Mortgage pay off
You’ll have to pay off the remainder of the loan on your home. To find out how much you owe, contact your lender or servicer and request your payoff amount. The payoff amount is the total you’ll have to pay to satisfy the terms of your mortgage, including any interest you owe until the day you plan to pay your loan in full.
Holding costs
Expect to cover holding costs or carrying costs between the time you accept an offer and the sale closes (typically 30 to 45 days). During that time, the seller continues to pay the monthly mortgage payment, taxes, insurance, HOA dues, and utility bills.
FSBO fees: You’ll spend some of your 3% commission savings
Sure, as a FSBO seller, you save on the listing agent commission, but there are hidden fees in doing it yourself. Discounting the value of your time, expect to shell out for the following costs that are normally included in an agent’s commission:
Home appraisal
To help set a listing price, FSBO sellers often hire an appraiser to determine the home’s fair market value, based on comparative properties, or “comps.” Expect to pay between $200 and $600 for an appraisal. The national average is around $357, but the actual cost will depend on your home’s size, property type, and location.
