Home Sellers in Citrus Heights How Much are Closing Costs?

So you've accepted an offer on your Citrus Heights house and are anticipating a sizable profit when all is said and done. But then you're faced with all those closing charges at the end of the transaction, when it's time to close. Those charges may not be too much of a burden if you have a lot of equity in your house because they'll be subtracted from the sale earnings. However, it still reduces your profit, and you must be prepared for this. Let's take a deeper look at how much house sellers in Citrus Heights have to pay in closing expenses.

Home Sellers in Citrus Heights

What Is Closing?

Closing is the final stage in the home selling/buying process at which money and documents are transferred so that ownership of the property can be transferred from the seller to the buyer. Basically, it boils down to this: both the buyer and the seller fulfill everything they agreed to in the contract.

To clear the title, the seller pays off all of the house's loans at closing, and the buyer and her lender subsequently wire transfer monies to cover the remaining sum. Closing is usually handled by a third party, most commonly an escrow company. This guarantees that all transactions involving money, documents, and other goods are completed correctly.

Common Seller Closing Costs

Buyers often pay much of the closing costs, but sellers also bear much of the financial burden at closing. Here are some of the costs you’ll be facing at closing as a seller . . .

Agent Commissions

“Real estate agent commissions are the most significant closing cost the seller typically pays.

It's typical for the seller to pay both the listing agency and the buyer's agent's commission. This normally means a 6% damage to your bottom line, with each agent receiving 3% of the home's selling price. That would be $15,000 on a $250,000 property sale."

That is certainly a substantial sum of money, but many people are unaware that agent commissions are negotiable. Contact a Property Sales Group agent at 916-990-7376 for additional information.

Title Insurance

Another part of the closing costs you’ll have to bear as the seller is the title insurance, that is, the cost of the lender’s title insurance policy.

“"A title search is undertaken prior to a transaction to verify ownership. In some states, a title examination by a real estate attorney is also necessary. A title policy protects the lender (and the new property buyer, if they choose to purchase their own policy) from unforeseen ownership disputes. While not typical, an ownership claim can result in court conflicts — and the associated high legal fees. You won't be able to reduce the cost of title insurance, but it's probably worth the trouble it could save you."”

Taxes and Other Related Fees

Taxes and related fees are among the other closing charges that Citrus Heights house sellers incur. The amount you will have to pay as the seller is negotiable and may vary depending on individual contract requirements, as well as filing and recording fees, which are regulated by the state or local government. Sellers, on the other hand, are almost always required to pay the property or deed transfer tax.

Then there are property taxes and sometimes HOA fees. These “will likely be split with the buyer (unless you, as a seller, agree to cover them). [They] are normally prorated based on the closing date. So, for example, if you were closing on the 15th of the month, as the seller you’d be on the hook from the first through the 14th. As the home’s new owner, the buyer would pick up the tab starting on closing day.”


If you happen to be selling in a strong buyer’s market, you may have to sweeten the deal by making some concessions. One of the most common in this scenario is when the seller agrees to pay some (or all) of the buyer’s closing costs.

Depending on the type of buyer's mortgage loan, you may be limited in how much you can give in concessions. For example, "the restrictions on seller concessions for a conventional loan for a single-family house that will be a primary residence vary from 3% to 9% depending on the size of the buyer's down payment and if they're receiving closing cost help from other sources." Government-backed loans, such as those from the Federal Housing Administration, have their own restrictions on seller concessions."

Your agent can help you navigate this complicated course. Discover more by calling 916-990-7376.

The Agent Advantage As a result, as a Citrus Heights house seller, your closing expenses will typically be around 6% to 10% of the transaction price. And it isn't a tiny sum of money – but your Citrus Heights agent can assist you. Your agent can help you negotiate the elements of the contract that can be negotiated and save excessive fees. If you're a seller concerned about closing fees, give us a call at 916-990-7376.