Seller Costs

What costs does a seller have to pay? We currently rent my IL's house and are going to be selling it for them as they live OOS. We arent going through a real estate agent, selling it to an investor. Anyone know what fees my IL's will be responsible for?

Re: Seller Costs

The seller's closing costs are relatively minimal versus the buyer's.

I assume your ILs are using a real estate attorney to handle the closing. He/she should be able to give them a breakdown of the costs and tell them what they will "net" from the sale (given that all of these costs should be paid out of the sale proceeds, unless it's a short sale).

Generally, at closing, the seller will pay:

1. Pay-off of the mortgage (assuming that they have one);

2. Legal fee to the attorney (on average, $1100-1500);

3. Transfer tax (I think it's $4 per every $1000 of the sale price in NY); and

4. $500 credit to buyer for the Property Condition Disclosure requirement, unless they fill out the form and give it to the buyer (but I've never know an attorney to let their client do that).

I think there is also a small title closer fee (in the range of a couple of hundred dollars), and of course, if there are items like outstanding taxes/bills, they would be paid before closing.

Again, the attorney can give more specifics to your ILs, but these are the general items that I am aware of.