One of the big questions sellers have when they list their homes in the Iowa City area is just how much it will cost them to sell the house. Typically at listing appointments I provide a “net sheet” that shows an estimate of the costs you can expect at closing.
I prepared the numbers below for a past client with a listing price for the home of $180,000. (Although the price of the home is only really relevant for the real estate commission, most of the costs are the same, regardless of the price of the house or condo). In this particular case, although this was an estimate, the difference between the estimate and the amount on the actual closing statement was less than $100.
Estimated Closing Costs when you Sell a House in the Iowa City Area
Real Estate Commission (5 %) $9,000
Commission rate is negotiable will vary by brokerage
Property Taxes $3,530 – (One Year’s real estate taxes).
The month you close in will impact this number. It could be a little higher or a little lower – Calculating a year is a safe estimate.
Transfer Tax $286.40
Iowa Real Estate Revenue Tax Calculation, Johnson County
Abstract Update $300
Attorney Fee for updating the abstract
Deed Preparation / Closing Fee $265
Attorney Fee for the Warranty Deed and other documents required in the transfer of property + Preparation of closing documents for the HUD 1 Settlement Statement
Overnight Mailing Fee or Bank Transfer $20 – $25
Fee to send mortgage pay-off to the lender who holds your home loan
These numbers do not include the mortgage payoff for the home loan or any equity loans. There may be some variances from brokerage to brokerage. At the listing appointment you should ask the Realtor for a net or closing sheet so you can check exactly what your closing costs will be when you sell your home in the Iowa City area.
Are you looking for the right Realtor to help you navigate the complexities of the real estate market, all the while looking out for you and your money? Sound advice and guidance is just a phone call, text or email away. Call Denise now at 319-400-0268.
Disclaimer: Whenever I write posts like this one I take care to point out I’m not an accountant. Please verify with a professional before making any financial decisions.