Are you thinking of selling your home in the state of New York? Maybe you are wondering what the closing cost will be? If so, then you have come to the right place.
As you may already know, there are several different closing costs that you will face as a seller. These costs will affect the total profit you will receive once the deal has been completed.
Below we are going to take a deeper look at some of the costs you may have to pay when selling your home.
Paying Off Your Mortgage Balance
The first closing cost and often the biggest is paying off your current mortgage balance.
However, if you are lucky enough to own the home outright, this cost can be excluded from the list of closing costs.
Also, any other type of loans you may have on the home will need to be paid off before you can receive any profits from the sell, such as a home equity line of credit.
The Loan Payoff Fee
Depending on your mortgage company, you may have to pay a loan payoff fee. This is just one of the costs of selling a house in New York.
Before you sell your home, make sure to check out your contract to see if this fee is included.
If you don’t have a copy of your mortgage contract handy, call your lender and ask for this information.
If you have a lien placed on your property by a court, you will have to pay off that lien with proceeds from the sale.
Some of the common types of liens include money owed to contractors, back property taxes, and other court judgments.
Keep in mind, there is no way of getting around not paying this closing cost. So make sure you are prepared to pay these debts during the closing process.
Prepayment Penalty Fees
Some lenders penalize you for paying off a mortgage before the term of the loan is up. This will be added to your closing costs.
This fee is often buried in your mortgage contract and you may not have even realized it was there. In order to make sure, call your lender and ask them about any prepayment penalty fees.
Hopefully, your mortgage company does not require you to pay one. If they don’t, it will mean more money in your pocket after your home has closed.
Any Recording Fees
If you owe money on the New York property that you are selling, you will have to pay recording fees.
This fee is charged after it has been recorded that any and all debts you have been fully paid. This closing cost may seem strange but it is required.
Many people do not know about this closing cost and it can come to them as a surprise. Now you know about it and you will be prepared when selling your property.
Any Commissioned Owed
Most people hire a real estate agent to help them sell their home quickly, and for top dollar.
Agents make most of their living by charging a commission after they find a buyer for the home and the deal goes through.
This commission is one of the largest closing costs but well worth it if the agent helps you sell the home quickly.
Most real estate agents charge around 6% of the total value of the sell, however, this is negotiable.
Any Notary Fees
There is quite a bit of paperwork during the process of selling a home. All of this paperwork will need to be notarized to make them binding.
A notary, which is a person that handles these important documents will charge a fee for their services.
This fee is one of the smaller closing costs. Most of the time, the seller pays these fees but sometimes the buyer will agree to share the cost.
When you are selling your home, you will have to use an escrow service. An escrow service will act as an intermediary between you and the buyer.
The company will hold the money from the buyer’s lender and handle things like closing costs.
To do this, the escrow service will charge you a fee. Many times the buyer and the seller split this fee. This makes it fair for both parties and the burden will not be on just one person.
Title Search Fees
A title search will need to be conducted to prove that you are the rightful owner of the property.
There is a small fee that is associated with a title search that has to be paid during closing.
Sometimes the buyer will require you to fix some problems with the home. This is part of the selling agreement and will need to be completed before you receive your payment for the home.
However, if you are selling your home as-is, you may not be required to fix any issues. This closing cost will vary from house to house.
A Termite Letter
Last, but not least, you will need to pay for a termite letter. When selling a house in New York, you will be required to have it inspected for termites.
After determining that the home is free and clear of termites, the pest control company will issue a termite letter to the buyer.
As you can see, there are a lot of closing costs associated with selling a house in New York. Now that you know what to expect when it comes to these costs, you won’t be shocked by them.
The buyer will often pay some of these fees and you’ll want to keep in mind, every case is different.
Most of the time, these closing cost fees are split between the buyer and the seller to make things fair for both parties.
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