Congratulations! You made the important and life changing decision to sell your Nashville home. You armed yourself with knowledge about your home’s current market value, and did what was necessary to make it market-ready.
As a result, you recieved a favorable offer, and have now entered into an agreement with a buyer. The final step in the process of selling your Nashville home is the closing or settlement.
What Happens at Closing
At the settlement meeting, all papers have been prepared by closing agents, title companies, lenders, and lawyers. This paperwork reflects the sale agreement and allows all parties to the transaction to verify their interests.
The closing agent conducts the settlement meeting and makes sure that all documents are signed and recorded and all payments are paid and properly distributed. All parties will sign the papers - officially sealing the deal!
Closing Costs You Should Expect When Selling Your Nashville Home
It can often be confusing as to who pays what fees and payments in the closing costs. Both buyers and sellers have costs. Buyers are usually faced with more line-item expenses than sellers – although sellers pay more.
Closing costs can vary according to where you live - but as the seller, you can typically expect to pay anywhere from 6% to 10% of your home's sale price at settlement. The actual amount won’t be cash out of your pocket – it will be deducted from the profit on your sale.
Once you’ve paid off your mortgage and any other loans on your Nashville real estate property, the largest amount you can expect to pay at closing is the sales commission, which can range anywhere from 5% - 8% of the purchase price - with the average being around 6%.
Typcially, the seller pays the sales commission for both the listing agent and the buyer’s agent. This can change, however, during different market trends. In a sellers market, for example, when demand is larger than the supply, the buyer may have to pay for their own agent. Nashville real estate agent sales commission doesn't change when there are two agents - it's still a percentage of the sale.
There are a few other expenses that you will be responsible for when selling your Nashville home, such as title insurance for the new owner and government transfer taxes. If your home was purchased within the last 3 to 5 years, you may be entitled to a break on title insurance - by requesting what is called a “reissue rate.” If you offered the buyer a credit toward closing costs, that will come off the total as well.
Comprehensive List of Closing Costs for Nashville Home Sellers
Typically, sellers wiil be responsible for the following closing costs and fees:
- Escrow (can include a basic escrow handling charge, document preparation fee, and notary fee)
- Recording fees
- Transfer fees
- Pest inspections & pest completion costs
- Natural hazard disclosure
- Roof certification
- Home warranty
- Repair costs (buyer credit for request for repair work)
- Buyers closing cost credit (negotiable amount agreed upon in purchase contract)
- Other buyer credits (mortgage buydowns or other fees paid on the buyer’s behalf as part of the purchase contract)
- Real property taxes (proration due if the taxes have not yet been paid)
- HOA docs and transfers
- RE sales commissions (seller's agent & buyer's agent)
- Loan payoffs & beneficiary demands
- Title insurance for owner’s policy
- Delivery or courier fees
- Wire fee (wiring net profits to seller’s bank)
The above list includes many of the closing costs that Nashville home sellers should expect, however, it may not include all of them. Actual closing fees can vary from state-to-state, county-to-county, city-to-city, and even within a city. If you are planning on selling your Nashville home, give us a call. We can give you a better idea as to what closing fees are likely to affect you.
When figuring the costs involved with selling your Nashville home don't forget to estimate some of the costs incured while preparing your home to sell, such as needed repairs and/or improvements to make your home more attractive to prospective buyers. Even if those costs may have brought a higher sales price, they should be included in your selling cost calculations.
- Avoiding Financial Stress
- Build a Plan of Action and Get Ready
- Finding the Right Seller
- Pre-Qualifed vs Pre-approved
- Hot, Normal, and Cold Markets
- Importance of Inspection
- Your Credit Score Matters
- Is Buying a Home Still a Smart Plan?
- Buying a Foreclosure
- Why Hire a Buyer's Agent?
There are many components to the home selling process - no doubt about it. That's why you want an experienced Nashville real estate agent working on your behalf – from listing your home at the right price to walking you through the closing - and beyond!
Over 15 years experience helping Buyers and Sellers
"The Realtor Who Knows Construction"
Our team of highly experienced real estate professionals provide exceptional, personalized service - and will work relentlessly to ensure that your home selling experience is a positive and rewarding one! Pleae give us a call or send us an email today.
We look forward to helping you achieve your Nashville real estate goals!
RE/MAX Fine Homes
1624 Westgate Circle Suite 125
Brentwood, Tn 37027
Cell: (Direct) 615.438.4941