Let's Talk About Closing Costs When Buying or Selling in Highlands & Cashiers NC

Selling a home on the Highlands-Cashiers Plateau is exciting, but expenses can sneak up on you. Imagine being at the closing table, ready for a profit, only to find thousands of dollars deducted from your proceeds. That's the reality of closing costs, and if you're not prepared, they can reduce your earnings.

Let's break down the typical costs for sellers, why they exist, and how you can keep more of your money when selling your home on the Highlands-Cashiers Plateau.

What Are Closing Costs?

Closing costs are the final expenses needed to complete the sale of your home. They cover everything from legal fees to title transfers. Typically, sellers pay between 6% to 10% of the home’s sale price in closing costs.

Knowing these costs in advance can help you budget properly and avoid last-minute surprises.

The Most Common Closing Costs for Home Sellers

1. Real Estate Agent Fees

Real estate commissions remain a key expense for many sellers, but recent changes have made them more flexible and negotiable. Sellers are no longer required to cover the buyer’s agent commission, and all commission agreements must be clearly disclosed and agreed upon upfront.

How Much Do Commissions Cost?

Traditionally, commission rates ranged from 5% to 6% of the sale price. However, with the new rules, commission structures vary more widely and are subject to direct negotiation between sellers, buyers, and agents.

Who Pays the Commission?

• Sellers may still choose to pay the buyer’s agent commission, but it is no longer an industry standard.
• Some buyers may now be responsible for paying their own agent’s commission.
• Listing agents still charge a fee for marketing, negotiations, and transaction management, but the rate is now more customizable.

2. Transfer Taxes and Recording Fees

Transfer taxes are state and local fees for legally transferring the ownership of your home.

• Typical cost: 0.5% to 2% of the sale price.
• Payment responsibility: Often covered by the seller, but buyers may agree to cover part or all of it.

3. Title Insurance (Owner’s Policy)

Title insurance protects buyers from potential ownership disputes or legal claims on the property. While buyers usually purchase their own policy, many sellers pay for an owner’s title policy as part of the sale.

• Mandatory? Not required, but commonly expected in a home sale.
• Cost: Generally 0.5% to 1% of the home’s sale price.

4. Escrow and Closing Fees

Escrow services manage funds and documents to ensure the transaction is secure. These fees also cover the paperwork for transferring ownership.

• Role of escrow companies:
• Hold funds in a secure account.
• Ensure that all contract terms are met before money changes hands.
• Typical cost: Between $500 and $2,000, depending on location and the provider.

5. Prorated Property Taxes

Since property taxes are paid annually, you must pay your share up to the closing date.

• Calculation: The total property tax bill is divided based on the number of days you owned the home that year.
• Example: If property taxes are $6,000 annually and you sell halfway through the year, you would owe $3,000 in prorated taxes.

6. Homeowners Association (HOA) Fees

If your home is part of an HOA, expect additional fees at closing.

• Unpaid dues: Any outstanding HOA fees must be paid before closing.
• Transfer fees: Some HOAs charge $200 to $1,000 to process the ownership change.

7. Attorney Fees (If Required)

In some states, or certain transactions, you must hire a real estate attorney to review and finalize the sale.

• Typical cost: $500 to $1,500.
• Role of attorneys:
• Review contracts and closing documents.
• Ensure everything is legally sound.

How to Reduce Your Closing Costs

Closing costs can take a sizable chunk out of your home sale profits, but the good news is that there are ways to cut back on these expenses. Whether through negotiation, strategic choices, or finding cost-effective service providers, you have options to keep more money in your pocket. Here are some practical ways to lower your closing costs as a seller.

Sell Without an Agent (FSBO) — this means no listing agent commission. However, you’ll still need to:

• Pay the buyer’s agent commission (usually 2.5% to 3%).
• Handle marketing, negotiations, and paperwork yourself.

FSBO works best if you have experience in real estate or a buyer already lined up.

Ask the Buyer to Cover Some Costs

• In some deals, buyers agree to cover certain closing costs instead of negotiating a lower sale price.
• This works best in a seller’s market, where buyers compete for homes.

Shop Around for Service Providers

• Get multiple quotes for title insurance, escrow services, and attorneys.
• Some companies offer discounts for bundled services.

Preparing for Closing

As you approach the finish line of your home sale, there are still a few final steps to take before closing day. Proper preparation can help avoid last-minute surprises and ensure everything goes smoothly. Here’s what you need to do before handing over the keys.

1. Review the Closing Disclosure Early

• You’ll get a Closing Disclosure a few days before closing that lists all costs.
• Review it carefully to catch any unexpected charges.

2. Finalize Repairs and Paperwork

• Complete any agreed-upon repairs before closing.

Make sure liens, HOA fees, and taxes are paid to avoid delays.

Wrapping Up

Selling a home on the Highlands-Cashiers Plateau involves more than just finding a buyer. Closing costs can add up, but understanding what to expect and planning ahead can help you retain more of your profit.