What Are The Closing Costs For Home Sellers In Baltimore, Md?

Selling a house is an important financial transaction, and most sellers are focused on the profits they stand to gain. However, as a seller, you must bear in mind that closing costs are an integral part of every real estate transaction. These costs encompass a range of services and fees necessary to finalize the sale. If you are wondering, "Is it essential to be aware of these expenses to sell my house fast?" The answer is ‘Yes.’ Let’s deep dive into the common closing costs paid by home sellers in Baltimore, MD.

Real Estate Agent's Commission:

In Baltimore, it's customary for sellers to pay both the listing agent's commission and the buyer's agent's commission. The typical commission rate in the Baltimore area ranges from 5% to 6% of the final sale price, though this percentage can be negotiated. For example, if you sell your home for $7,00,000, you’ll need to pay around $35,000 to $42,000 in commissions.

Transfer And Recordation Taxes:

Transfer and recordation taxes are a 1.5% percentage of the property's sale price. These taxes are calculated based on the property's location and are typically shared between the buyer and the seller.

Outstanding Property Taxes:

As a seller, you'll need to settle any outstanding property taxes before the home sale is finalized. This ensures that the new owner doesn't inherit any tax liabilities. The amount you owe will depend on the property tax rate in your specific area and the time of year when the sale occurs.

Title Insurance and Title-Related Fees:

Title insurance is essential to protect both the buyer and lender from any unforeseen issues with the property's title. The seller usually covers the cost associated with the owner's title insurance policy, which typically ranges from 0.5% to 1% of the property's purchase price. There may also be additional title-related fees to consider, such as settlement fees, which average around 0.5% to 0.6%, and title search fees that can vary from $75 to $200, based on the property's location.

Escrow Services:

The escrow company holds funds and documents until all conditions of the sale are met, at which point they release the funds to the appropriate parties. The cost of escrow services can vary but is typically 1% – 2% of the purchase price of the home.

HOA Fees:

Homeowner's associations (HOAs) are common in many communities, and if you live in one, you are likely responsible for paying monthly, quarterly, or yearly dues. Just like property taxes, you'll need to ensure that you have paid your dues up until the closing date of the sale. Some HOAs may also charge a transfer fee to transfer ownership of the property to the new owner.

Miscellaneous Expenses:

Be prepared for other miscellaneous expenses that may arise during the sale, such as repair credits to the buyer, attorney fees, notary fees, and courier fees. Closing costs for sellers in Baltimore costs around 8% to 10% of the final sale price.

If you are wondering, "Are there any ways to sell my house fast in Baltimore MD, without paying closing costs?" consider selling your house to cash home buyers. They do not charge any commissions or fees and will close the deal at your convenient date without any hassles.

Author Bio:

Sell House Fast is a reputed ‘We buy houses as-is in Baltimore, MD’ company that purchases homes for fair cash and offer quick closing in less than 2 weeks. They don’t charge any commissions, and they cover all closing costs. Visit https://www.sell-house-fast.net/ for more details.