Wednesday, May 7, 2014

Seller's and Buyer's Closing Costs in MA

Whether buying or selling, it is good to know the costs and expenses associated with your real estate transaction to avoid surprises.

Home selling costs*:
  • Brokerage fee - typically around 5%. Example: on $350,000 sale the commission would be $17,500.
  • Outstanding mortgage and any outstanding liens must be paid off at closing.
  • Massachusetts Tax Stamp or Massachusetts Property Transfer Tax - $4.56 per thousand (exceptions are Barnstable County, Dukes and Nantucket Counties). Example: for $350,000 sale the deed stamp tax would be $1,596.
  • Title V Septic Inspection ($300-$1000, good for 2 years).
  • Real Estate Attorney Fees ($750 and up).
  • Smoke/Carbon Monoxide Inspection ($45 in Franklin, good for 60 days).
  • Adjustments to final water bill, sewer, electric, and oil readings.
  • For Condominiums: 6d Certificate (statement that all outstanding condominium fees have been paid as of the month of the closing) is required at closing. Cost for this certificate is the responsibility of the seller.
  • Miscellaneous costs for mailing, filing fees, recording fees that will be added to your HUD settlement statement at the closing (estimate $200-$300).
  • Moving Expenses

Home buying costs*:
  • Home Inspection ($350 and up, depending on the size of the home and tests performed).
  • Costs associated with loans: Downpayment (usually 5% and up of loan value); Loan Origination Fee (typically 1% of loan amount, not all mortgage providers charge this fee); Recording fees - ($350-$550); Courier fees, municipal lien certificate - ($100); Survey and plot plan ($150-$300); Bank charge for credit report and flood certification fee ($50-$75); Title insurance Lender's Policy (about $3.00-4.00 per $1000 of purchase price); Appraisal fee ($400-$600); Bank attorney's fees; If applicable - Points and PMI (private mortgage insurance premium).
  • Daily Interest Charges - if you're financing, you generally won't make your first payment until the next month, so most lenders will require you to pay the interest due from the time you close until you make your first mortgage payment in advance.
  • Private Representation - Your Real Estate Attorney Fees ($350 and up).
  • Optional Title Insurance Owner's Policy (estimated cost is $3.75 per thousand).
  • Property Insurance and Tax Escrow amount (usually 3-4 months) if being paid as part of the mortgage.
  • Hazard Insurance: most banks require a one-year, prepaid insurance policy.
  • Prorations for your share of costs, such as utility bills, oil left in tank, and property taxes.

Do you have more mortgage questions or need pre-approval? Contact Bob Naranjo from First Home Mortgage
Need a real estate attorney for your purchase or sale? Contact Andrew Rubenstein of Rubenstein and Associates
For your real estate needs connect with me at 508-507-9715 or email

Contact us and let us help you make your buying or selling experience more enjoyable.

*Please note this is a general guide and the list and amounts of fees vary with each transaction. Your lender and attorney will give you more accurate values before your closing.