Determining closing costs for a seller in a real estate transaction is pretty simple. We sell an abundance of raw land in South Carolina so the closing costs are much easier to figure out. Mainly, because utility bills and insurance aren’t included in the transaction. Probably the most confusing variable is the property tax.
Taxes. In South Carolina, it is customary for the seller pays the buyer for the prorated taxes and in return the buyer is responsible for the entire bill at the end of the year. In other words, if your annual tax bill is $365 per year and you close on January 5th (the 5th day of the year) then you, as the seller, will pay the buyer $5 for your portion. As a buyer, you must collect this money at the closing and then pay the entire $365 at the end of the year.
Attorney fees. The primary responsibility of the seller is to prepare the deed and deliver it to the buyer. The deed preparation fee may vary depending on your attorney and their fee schedule. I’ve see deed preparation cost as little as $200.00 and as go up from there. Again, this figure is up to the lawyer. Ask them what they charge for deed preparation and if you think it is too much you can ask them if they will adjust the price, or call another real estate attorney. Also, there may be courier fees or recording fees added to your closing costs… but is typically less than $100.
Deed Stamps. This is the transfer tax charged by the county for all real estate sales. Currently this amount is $3.70 per $1000. So for a $100,000 sale the price the deed stamps would be $370.00. Or you could take the contract price, divide it by 1000, and then multiply by $3.70. This will help to determine the amount due for deed stamps, payable by the seller, at the closing.
Real Estate Commission. This is the amount that the seller is paying the real estate agency. Due to anti-trust laws, real estate brokers shall never base their percentage on what other real estate companies charge. Check with your real estate agent and see what they are charging. Use this amount and deduct it from the sales price or add it to your closing costs.
As always, check with a real estate attorney to make sure this information is accurate. This information should be considered reliable but not guaranteed.