When it comes time to go to closing when you sell your home, you will see a total for "Seller Deductions" - where does this money go?

Brokerage/Commission
Normally real estate commissions are split four ways (1) the listing broker, (2) the listing agent, (3) the selling broker and (4) the selling agent. There is not a set limit on commission and it can be negotiated, however it is best to discuss all of the commission options at the time of listing.

 

Administrative Fee
This is a fee that most real estate companies charge all sellers and buyers. This fee covers the main document preparation and storage of all closed files.

 

Attorney Fee

This is the fee that the closing attorney charges for conducting the actual closing.

 

Transfer Fee
An assessment by state or local authorities at the time a piece of property changes hands

 

Courier Fee

This is a standard fee in the event you have a mortgage payoff that needs to be over-nighted.

 

Tax Proration's

At the time of closing, your property taxes will be calculated to that day and you will be charged from the first day of that current year to the day of closing. (if you were charged for your taxes through your mortgage company - you will receive a check from them afterwards for the amount you were charged).

 

Title Search/Policy

This is a insurance policy you are providing to the buyer guaranteeing that there is good marketable title to the property. A title policy protects the insured's interest in the property if a title claim is made against the property. (Missing heirs, Unpaid Taxes, Unreleased mortgages/deeds of trust - are just to name a few claims that could arise)

 

Recording Fee

This is the fee to record any affidavits relating to the title in the county court house.

 

Seller Warranty Protection

Not all sellers have this fee - it all depends on the purchase agreement, if the purchaser has asked for this to be provided.

 

Repair Cost

Depending on your contract, you may have to complete some repairs or provide the buyer with money to cover repairs that needed to be done

 

Termite Inspections

Depending on your contract, you may be asked to provide the buyer with a clear termite letter - this fee is the cost of the inspection and/or treatment cost.

 

Septic Inspections

Depending on your property and your contract, you may be asked to have your septic system inspected to verify it is in good working order - this fee is the cost of that inspection