Part of buying and selling real estate are the fees that add up as a transaction comes to a close. Overlooking closing fees can be very damaging to the bottom line of a project for an investor, and not being aware of closing costs in a residential transaction could leave a home owner wondering where the profit from their sale went!
When selling in Western New York, plan ahead for the following expenses:
- First and foremost, all taxes, water bills, liens (such as mortgages), need to be taken care of. Generally a mortgage will be satisfied as part of the proceeds of the sale.
- Real estate commissions
- Attorney’s fees on average are currently $500-$600.
- Transfer Taxes – In Erie County, this is $9 for every $1000 of the sale (broken down into $4 for NY and $5 for Erie county). For example, on a $130,000 sale, there would be a transfer fee of $1,170.
- Title Search costs of $400 to $500 if you have your original abstract. It could cost significantly more without!
- Survey costs of $350 to $400 for an average city or suburban parcel with a copy of the survey from when you purchased your home.
- And generally another $500 in miscellaneous expenses that pop up along the way.
This list is not all inclusive, and the figures may vary depending on who you use to complete various aspects of the transaction, but the core principal remains the same: Plan ahead for closing costs!
(Thank you to contributing editor and real estate broker Ken Nagel for his assistance on this article.)