What are the closing costs?

We will go over your closing costs for each offer; however, here is a simple way to get a rough idea of what your costs will be…

Sales price

minus mortgage (your pay-off amount is always a bit higher than what you actually owe, because of interest)

minus commission

minus state transfer taxes (sales price times 1%, divided by 4)

minus county transfer taxes (in Anne Arundel County, the transfer taxes are sales price times 1% divided by 2)

minus county documentary stamps (in Anne Arundel County, it’s sales price times 3.5, divided by 1000)

minus $1000 in miscellaneous fees

equals

your bottom line…

This is assuming that you and the buyer are equally splitting state and county transfer taxes and documentary stamps, which is the custom. This is also assuming you don’t have other things that must be paid off, such as sewer hook-up fees, ground rent, etc. Also, in negotiating the contract, you may agree to give closing cost help to the buyer, or perhaps to give a certain amount of money to go towards home inspection repairs or replacement of carpet, or other items. At settlement these expenses would also be deducted from your bottom line.

Also at settlement, you will be reimbursed for items that you have paid for in advance, such as the property taxes, homeowners association dues, etc. These items will increase your bottom line. And, your mortgage company will send you a check for the balance of your escrow within 3 weeks of settlement.