(518) 669-0265 Primary
Sign Up Login

Articles and Advice

Closing Costs That Might Surprise You

Selling your home soon? As you look at your finances and list your home, it's probably tempting to focus on your potential earnings. However, every real estate transaction comes with closing costs for the buyer and the seller.

You probably already know you're responsible for the agents' commissions, but what about the rest of your closing costs?

Before selling your home, make sure you understand all the closing costs you'll be expected to cover. Here are some common costs that may surprise you:  

  1. Pro-Rated Property Taxes
    You're responsible for all property taxes up to the date of the sale. That means if you're selling in July, you need to pay your property tax for the first seven months of the year — not wait until next year to file. Make sure you're aware of the final number because you must provide this to the buyers. This is required because buyers will get a bill next year for the whole year, including the months you still owned the home.

  2. Transfer Taxes and Fees
    Real estate transactions are essentially title transfers from one owner to another. Before your sale is complete, you must pay state and county or city fees in order to process this transfer. You may also need to pay transfer taxes. While most sellers are aware that it costs money to transfer a title, many are surprised by the final percentage, which can fluctuate wildly depending on your location. Make sure you're aware of the local requirement beforehand.

  3. Title Insurance
    If you think buyers are always responsible for buying a title insurance policy, think again. Many states now require sellers to cover the new homeowner's title insurance policy. This coverage is designed to protect the mortgage lender from any future claims, and they won't approve the transaction without it. Find out now if you will be responsible for the buyer's title insurance coverage.

  4. Home Preparations
    Staging a home for market success is about more than just cleaning thoroughly and rearranging the furniture. Your real estate agent will know which services are the most valuable, especially to sellers who want to ask for more money or sell more quickly. For example, renting a storage unit will make it much easier to clear out a third of your clutter and personal possessions, leaving a more neutral and walkable space for potential buyers. Carpet cleaning, painting, lawn care, and professional photography services are also important investments for serious sellers.

Of course, your final closing costs before selling your home will depend on a lot of different factors. From zip code and loan terms to the buyers' willingness to negotiate, these factors will help you figure out just how much to set aside for closing. Understand your responsibilities and prepare yourself for every possible expense.

Thinking about buying
or selling a home?
I can help make the process easy, get in touch today!
Share on social media

Share On Facebook Share On Twitter Share On Pinterest Share On LinkedIn

If your property is currently listed with a Realtor, please disregard this notice. It is not our intention to solicit the offerings of other Brokers. All information deemed reliable but not guaranteed. Disclaimer: All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information on this site was last updated 12/03/2022. The listing information on this page last changed on 12/03/2022. The data relating to real estate for sale on this website comes in part from the Internet Data Exchange program of HGMLS (last updated Mon 03/23/2020 8:14:21 PM EST) or Global MLS (last updated Sat 12/03/2022 4:37:23 PM EST) or New York State Alliance MLS (last updated Sat 12/03/2022 4:44:30 PM EST) or Columbia Greene Northern Dutchess MLS (last updated Sat 12/03/2022 4:45:39 PM EST) or Southern Adirondack MLS (last updated Thu 05/02/2019 1:26:01 PM EST) or Otsego-Delaware MLS (last updated Sat 12/03/2022 4:39:23 PM EST) or Hudson Valley Catskill Region MLS (last updated Sat 12/03/2022 4:41:21 PM EST) or OneKey MLS (last updated Sat 12/03/2022 4:38:41 PM EST). Real estate listings held by brokerage firms other than Coldwell Banker Prime Properties may be marked with the Internet Data Exchange logo and detailed information about those properties will include the name of the listing broker(s) when required by the MLS. All rights reserved. --


If your property is currently listed with a Realtor, please disregard this notice. It is not our intention to solicit the offerings of other Brokers. All information deemed reliable but not guaranteed.

Privacy Policy / DMCA Notice / ADA Accessibility

Login to My Homefinder

Login to My Homefinder