Maryland Closing Costs for Sellers
When you’re selling your house, there are fees you must pay. Those fees are called closing costs. It doesn’t matter whether you’re working with a REALTOR® or selling your house on your own, you’ll have fees either way. If you’re selling your house in Maryland to buy another one, you will also have separate buyer closing costs on that purchase. What are the seller closing costs in Maryland? You’re about to find out.
*Closing Costs Definition*
Average Closing Costs For Sellers in Maryland
The typical closing costs on a house (when you’re the seller) can range from about 8% – 10% of the sales price. Let’s break down the closing costs into the different categories of things you’ll be paying for as a seller.
*What is Included in Closing Costs for Sellers?*
*Closing Costs Related to Your Mortgage*
If you’re the seller and you’re still making mortgage payments on your house, you will have a few closing cost fees. There will be a fee to pay off your loan. If you want your proceeds wired to a bank account, you will be charged a fee for the wire.
*Government Recording and Transfer Charges*
Unless other arrangements have been agreed upon, government fees are typically divided evenly between buyers and sellers in Maryland. These are simply the taxes and charges to change ownership and record the new deed in the public records. The actual cost of these fees will vary based on the sales prices and area in which the property is located.
*Fees Charged by the Title Company*
Title companies typically conduct the settlements in Maryland, What fees are sellers responsible for paying to the title company? Sellers may or may not be charged a fee to conduct the closing. This varies from one tittle company to another.
*Are REALTOR® Fees Included in Closing Costs?*
If you listed your house with a REALTOR®, you will be paying the commission, which then gets divided between the real estate companies involved in the sale of your house. This is how the real estate companies AND the realtors involved in the sale of house, get paid.
You may also be responsible for paying a flat fee to the brokerage that listed your house This fee covers all the administrative costs involved when listing and selling your house. This fee can range from about $350 to $500.
*“Other” Closing Costs*
Termite Inspection
If you buyer is using a VA loan to buy your house, you will be required to pay for their termite inspection. VA loans do not allow buyers to pay for the termite inspection.
Home Warranty
If you’re providing a home warranty for the buyers of your house, it is typically paid for at closing and included in your closing costs.
Seller Concessions
If you’re crediting any money to your buyers, such as seller help towards their closing costs, or money in lieu of making certain repairs, that money will become part of your closing costs, and will be deducted from your proceeds.
Unpaid Bills Related to Selling Your House
If you have any bills that need to be paid in regards to selling your house…for example, paying off a lien or paying for any contractor repairs that are still due…that money will be collected as part of your closing costs and will also be deducted from you proceeds.
Maryland Non Resident Withholding Tax
Unfortunately you will be subject to an 8% non-resident seller fee, if the Maryland property you’re selling is not your primary residence. To be considered a primary residence, you would have needed to live there at least 3 of the last 5 years. The monies are paid to the Maryland Department of Assessments and Taxation. They require this to ensure that the taxes have been paid and are up-to-date.
However, there are some options….
- After going under contract, you can obtain a certificate (issued by the Maryland Comptroller) stating that there is no tax due in connection with the sale of the property. The number to call to initiate this process is 1-800-MDTAXES. It takes a minimum of 3 weeks to have the certificate issued.
- File Md income taxes and have all, or part of the 8% refunded.
*How to Determine The Actual Amount of Your Closing Costs as a Seller*
By now you might be asking yourself “How do I know what my actual closing costs will be?” There’s no magical, standard formula. But, you can go online and find a few “Closing Cost Calculators”, that will estimate your closing costs. Your total fees will be based on the terms of your sales contract. Keep in mind, those calculators provide estimates, because certain factors can change as you go through the home sale process. But, you’ll have a pretty close idea of what to expect.
When Melissa Spittel is the listing agent, she uses a reliable “Closing Costs Calculator ” to assist all of her clients. It not only estimates their closing costs, but also how much they can expect to profit from the sale of their house. Again, it’s an estimate, but they always have a pretty close idea of what to expect, and how much money they will make from the sale of their house.
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About the Author:
Melissa Spittel is a local real estate expert who serves Carroll County and the surrounding areas in Maryland. Her knowledge, skills and experience are invaluable when it comes to buying or selling a house. Her experience working with out-of-state buyers and sellers makes her a great relocation REALTOR®, and she is part of Coldwell Banker’s Relocation Team. Do you need a real estate expert in another part of Maryland? Or even in another state? Melissa can easily connect you with a REALTOR® from her wide network of real estate pros.
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