So how much do closing costs…actually cost? Let me show you exactly what goes into “closing costs”. We’re going to use a sample selling price of 0000. And here are the categories we will start with: Commission Transfer Tax Misc: Preparation of Deed, Settlement Fees, Notary Fees These miscellaneous fees should only be a very small amount…around 0. The Transfer Tax will run (in Pennsylvania) 1%. So in this example, thats 00 The commission of the agent generally runs around 6%. Now this percentage varies from market to market, and can vary based on the different services each agent may be providing. We’ll use 6% for our example here, which is 000. So we’ll add all these up, and we come up with 200. Now lets move on to taxes. The taxes for a home are prorated over the year, basaed upon when you close on the home. If you paid all the taxes(lets say 00), and the home closed on July 1st, you would receive a refund of 00. If the taxes had not yet been paid at all, then you would owe 00. If your tax payments are escrowed as part of your monthly payment, there are a few different variables that can come into play as far as the proration is concerned. So depending on your tax situation, you will either be adding, or subtracting, the tax amounts. For our example, we’ll consider the taxes a wash (or 0 affect). So we have the selling price of 0000, less the 200 in fees & taxes, leaves us with 5800. Now we must subtract what is currently owed on the …
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