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How Much are Typical Seller Closing Costs in North Carolina?
And how to save approximately $5,700 in real estate commissions on a typical $190,000 NC home at closing by selling your home For Sale By Owner on Houzeo?
Congratulations! You’ve made it to the finish line. Closing on a home can be one of the most exciting moments as a seller, but it can also be a stressful one if you aren’t prepared. North Carolina is an expensive state when it comes to closing costs. Various regulations also make it a tedious state.
As a Houzeo For Sale By Owner (FSBO) seller, we expect you to go to your closing prepared. Our comprehensive North Carolina FSBO Home Seller Guide will help you accomplish exactly that.
Did you know Houzeo’s Gold Plan provides relevant Federal and State Seller Disclosures?
In this section, we’ll discuss the key documents and expenses you need to be aware of when closing on a home in North Carolina.
What Are the Different Home Seller Closing Costs in North Carolina?
Here are the typical closing costs in North Carolina, ordered by how big they are.
1.Mortgage Payoff: If you have a mortgage, the payoff will likely be the biggest item on your closing statement. It includes items like the principal balance, interest accrued from the last payment to the day of closing, recording fee, and any statement fee the lender might charge.
2. Real Estate Broker Commissions: The biggest expense for North Carolina home sellers is the broker/agent commission. In North Carolina, the typical commission is between 5-6% with generally half going to the listing agent and the other half to the buyer’s agent. The buyer’s agent commission is also called the Cooperating Agent Commission. If you’re selling FSBO via Houzeo, congratulations… You’ve likely saved thousands by paying $0 in listing agent commission! Go on. Pop a bottle of the finest Champagne or Scotch. You deserve it.
3. State, County, and City Transfer Taxes or Stamps: Excise taxes are typically paid by the seller, but the seller can also negotiate the payment with the buyer and indicate the agreement in the contract. North Carolina charges an excise tax of $2 per $1,000 of the sale price.
4. Property Taxes: These will be prorated based on the number of days that the seller has owned the property during the calendar year.
5. Attorney Fees: Attorneys in North Carolina play an important part in the closing process, taking care of contracts and other essential paperwork. Typically, attorneys charge between $400 and $700 in fees, depending on the type of home being sold and the type of sale it is.
6. HOA Dues, Document Fees and Transfer Fees, and Status Letter Fee: If the property falls under a Homeowners Association, you may be subject to various other charges. These include HOA dues, a document fee at the beginning of Escrow and a transfer fee at the end of Escrow, and a status letter fee.
How Should I Prepare for My North Carolina Home Closing?
Your closing agent will schedule a date for your closing. Here’s how to prepare for your closing day.
1.Review Your Closing Documents in Advance: Closing documents should generally be available to you in advance of the scheduled closing date. Review these documents at length and understand their provisions. Here are some key documents you’ll likely sign at closing:
- The HUD-1 or Closing Disclosure:
- Most North Carolina homes are purchased with a mortgage. If this is the case on your transaction, you’ll get the Closing Disclosure summarizing the costs in detail. If your transaction is all cash, you may get the HUD-1, although this is less common. These documents detail amounts you’re being charged for, your loan payoffs if any, and the net proceeds you will take to the bank. Remember, depending upon how much equity you have in the property, you might be asked to bring a check (or send a wire) on the closing date. Ensure there are no typos in your name, address, property address, bank info, and other details. Then review every amount and the totals to ensure there are no mathematical errors or inadvertent costs. You’ll be surprised how many times these documents have errors – this is one of the reasons our founder launched Houzeo.
- The Deed: This document enables the legal transfer of title from the seller to the buyer. Read this document carefully, verifying all details including the legal description of the property, the deed book, deed book page, and the Property Identification Number (PIN), if any. We know of a case where a Seller sold a $94,000 property, but the deed also legally transferred over the Seller’s 5 other homes worth $680,000 over to the Buyer. There was a huge scramble post-closing to correct this mistake. It could have been a nightmare for the Seller if the Buyer didn’t honestly transfer the rest of the properties back to the Seller.
- Statement of Closing Costs: This statement summarizes all the expenses involved in the transaction. This document is easier to understand vs. the HUD-1/Closing Disclosure, but they should tie.
- Certificate of Title: Allows you to state that you have the right to sell the property.
2. Ask Questions: If this is your first time selling a property, schedule an appointment with the closing agent before the date of the closing. Prior to that appointment do your research and ask clarifying questions on anything you have doubts about.
3. Bring TWO Forms of Official ID: There will likely be a licensed notary involved who’ll require that you swear you are who you say you are. Take a valid driver’s license or passport for ID. Carry a secondary ID as well, just in case.
Now you’re ready! You might’ve heard horror stories of people being blindsided by high closing costs in North Carolina – but that’s often the result of not preparing and educating themselves ahead of time. If you are a Houzeo For Sale By Owner Seller in North Carolina, we want you to be one of the most educated home sellers out there. Next step, log on to Houzeo.com and list your home for sale by owner. You’ll be in full control of your listing, and save thousands in the process!
Did you know Houzeo’s Gold Plan provides relevant Federal and State seller disclosures?
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