Real Estate
Sponsored by

Closing Costs for seller

2,054 Views | 16 Replies | Last: 7 yr ago by jja79
TxAggieGirl08
How long do you want to ignore this user?
AG
We're selling our house soon and we were wondering if there's a way to get an estimate for closing costs. Is there an average percentage we could use? I know we're paying for title and a new survey wasn't required, if that matters? Thanks!!
aggie_wes
How long do you want to ignore this user?
AG
Figure between 9 and 10%
SteveBott
How long do you want to ignore this user?
AG
If your paying the realtors a full 6% then go with 8%.

Edit wrong emoticon
aggiefan2002
How long do you want to ignore this user?
Agree with Bott. I've always heard total realtor fee percentage plus 2% as a good gauge.
TxAggieGirl08
How long do you want to ignore this user?
AG
Thank y'all!
2ndChanceAg96
How long do you want to ignore this user?
AG
On another note, what can you figure the percentage will be for closing costs on the buyer?
SteveBott
How long do you want to ignore this user?
AG
little tougher. several variables. Not including escrows and one year insurance policy around 2000-2500. Also depending if you want lender to pay some closing costs for accepting a higher then market rate.

Escrows and insurance a function of price point. They go up as you go up the pricing scale but the percentage will be lower then low end pricing. So 350K sales price closing would be around 2% but for a 100K sale could be more like 5%.
2ndChanceAg96
How long do you want to ignore this user?
AG
So worst case you can say 5% based on $200k to $300k? Just trying to understand about what I would need. Give or take.
SteveBott
How long do you want to ignore this user?
AG
What city will you buy?
voorheesdn
How long do you want to ignore this user?
AG
Your agent should be able to get you a preliminary net sheet. If you are in the Austin area and want me to run some numbers shoot me an email david@voorheesteam.com
SteveBott
How long do you want to ignore this user?
AG
Dave he is a buyer not a seller. But maybe both
voorheesdn
How long do you want to ignore this user?
AG
Yep Steve. We can still have title work up a net sheet on it.
SteveBott
How long do you want to ignore this user?
AG
I'd do here so other posters can see my calculations. Helps more then one
2ndChanceAg96
How long do you want to ignore this user?
AG
SteveBott said:

What city will you buy?
Sorry, I am just now getting to this but I would be buying in the Cypress area. NW Houston.
SteveBott
How long do you want to ignore this user?
AG
I was afraid you would say NW or W Houston. I tackle that area last. Here is what I would say is normal for every where else in TX.

2000 fixed lender costs. This can vary of course but most lender have base charges for underwriting, processing, appraisal, credit and flood checks etc.

800 for title. This can slightly very and how they are charged but at the end it is 700-800 per title company.

Now for insurance, figure one half of one percent of the value of the home. So 1500 per year for a 300K home

Taxes. They vary but I start with 2.5% of value of the home. 300K - 7500 per year.

So 2000+800+1500+ two months escrow account, (taxes 625X2 =1250, insurance 125*2= 250) =1500.

Total closing costs 5800 for 300K home loan or 1.93% of sales price.

So you have fixed and variable closing costs of the home. Lets take a 125K sales price

2000 + 800 + 700 = 3500 plus taxes of 520 escrow and you have 4000 in closing costs and 3.25% of 125K

Now for NW and W Houston. . Huge variations of insurance and taxes then the rest of the state. The taxes are driven buy a tax units called a MUD or municipal utility district that is set up by the developer to finance the basics, roads utilities etc. So in these areas you can go to each development and taxes can range from 2.7 to 3.6%. I have to research each home to track down the tax rate.

Insurance in Houston is higher then anywhere else but mainly driven by proximity to the coast. Pearland is cheaper then Texas City and Cypress is cheaper the Pearland etc. I would throw out my half percent of value of home and start with .8%. Clearly closing costs in these area's need to be upped and percentage of the value of home goes up as well.

Like I posted in the thread closing costs are harder to pin down for a buyer than a seller.
2ndChanceAg96
How long do you want to ignore this user?
AG
Yeah, this would be my third house in the area but my first house on my own since my divorce. This is extremely helpful information though because I can basically figure out on the high-end of what I would need to close for something in my price range.
Thanks for the detailed information!
JBLHAG03
How long do you want to ignore this user?
AG
Seems like seller's closing costs would have a big swing in-lieu of a general rule of thumb since you have to pay prorated property taxes. Will be a lot more in November than February.
jja79
How long do you want to ignore this user?
AG
That really isn't a closing cost. Prorated taxes are a cost associated with having owned the house rather than selling it.
Refresh
Page 1 of 1
 
×
subscribe Verify your student status
See Subscription Benefits
Trial only available to users who have never subscribed or participated in a previous trial.