Seller's Settlement Costs in Virginia

By
Real Estate Agent with RE/MAX Allegiance, Managing Broker/Branch Vice President
http://actvra.in/4pY7

What are the closing costs paid by the seller? 

An Explanation for Northern Virginia sellers 

Usually when one discusses closing costs in connection with the purchase and sale of a home they are referring to the costs incurred by a purchaser.  These costs include items such as lender's fees, money to establish escrow accounts for taxes and insurance, title charges, title insurance, and government recording fees.  Settlement costs can also include a survey of the property, pest inspection, appraisal, and other fees. 

For a detailed explanation of the settlement costs incurred by purchasers in Virginia, please read my post:

Purchaser's Closing Costs in Virginia.

Sellers of a home also incur some settlement costs, most prominently the fee paid to the real estate broker for selling the home.  In today's current Northern Virginia buyer's market, it is often typical for many purchasers to ask the seller of a home to pay a portion or all of their closing costs.  Of course, this request leads to negotiation.

Here's a breakdown of seller's settlement closing costs in Virginia:

Total Sales/Broker's Commission

CommissionThe first category of closing costs comprises the broker's fees for marketing and selling the home.  There is no standard or set fee for selling a home.  Do not let any REALTOR tell you differently. 

Commission:  This fee will be determined when you first hire a listing agent to sell your home and sign a listing agreement with the brokerage.  The commission is normally represented as a percentage of the sales price, but it could be a flat fee.  Your listing agent, by placing your home on the Multiple Listing Service, then enters into a contract with all buyer's agents who show your home, agreeing to split his or her commission with the cooperating agent.  At settlement you will see these fees delineated at the top of page 2 of the important HUD-1 Settlement Statement.

Transaction Fee:  Some agents and brokerages will charge you a transaction fee, or administrative fee, above and beyond the commission.  I DO NOT.  PERIOD.

Title & Recording Charges

Virginia home sellers have several fees that they will be charged by the settlement company or closing attorney as well as a Grantor's Tax.

Settlement Fee:  This fee can vary with different settlement companies but is typically between $250 and $350.  This is the fee paid to the settlement company for their services in performing the closing on the property.

Document Preparation:  This covers the service of preparing the deed to transfer the property from the seller to the purchaser.  This can cost between about $150-$350.

Release Process/Delivery Fee:  This fee is paid to the settlement company to allow the liens on your property (usually just your mortgage) to be released.  The fee is typically between $150-$200.

Grantor's Tax:  This fee is paid by all sellers in Virginia when they transfer a home.  The fee is equivalent to 0.1% of the sales price.

Additional Settlement Charges

 

Termite InspectionPest Inspection:  Usually costs $30-$60.  Often the purchaser will pay for this, but sometimes it is left up to the seller.

Archiving/Scanning:  Some settlement companies will archive and/or scan all the closing documents to keep on file for future reference and charge a nominal fee for this service.

 

 

 

Let's take a look at an example of two different sales and what the seller's costs would be:

 

Arlington Condo

McLean Townhouse

Sales Price $450,000 $850,000
Total Commission $27,000 $51,000
Transaction Fee N/A N/A
Settlement Fee $255 $255
Document Preparation $150 $150
R-5 Form Processing Fee $10 $10
Release Process/Delivery Fee $175 $175
Grantor's Tax $450 $850
Pest Inspection $50 $50
Archiving/Scanning $20 $20
     
     
TOTAL CLOSING COSTS $28,110 $52,510
     
CLOSING COSTS % of SALES PRICE 6.25% 6.18%
     
     
     
     
     
     

Ready to sell your home?

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Contact Brian Block, REALTOR/Attorney: Licensed in Virginia & WashingtonD.C. (703) 626-0715  (703) 626-0715 . If you are interested in selling a property in Northern Virginia including Arlington County, Alexandria City, Annandale, Burke, D.C., Fairfax County, Falls Church City, Lorton, Springfield, Washington D.C., contact Brian today.

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Ambassador
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Patricia Kennedy
Evers & Company Real Estate, Inc. - Washington, DC
For Your Home in the Capital

One of the things I love about Evers is no hated transaction fee!  I never had the nerve to pass it onto clients and it annoyed me to have to absorb it!  Yikes!  And good information.

Sep 07, 2008 04:04 PM #1
Rainmaker
651,655
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Brian,

This further reinforces the distinct 'local' nature of real estate...it's amazing how different regions have different customs...even closing fees!!! Thanks,   Fran

Sep 07, 2008 05:15 PM #2
Rainmaker
636,227
Brian Block
RE/MAX Allegiance, Managing Broker/Branch Vice President - McLean, VA
Northern Virginia & D.C. Real Estate

PAT:  I really don't like transaction fees either.  While my brokerage charges a nominal fee, I don't pass that on to clients.

Sep 07, 2008 05:23 PM #3
Rainmaker
636,227
Brian Block
RE/MAX Allegiance, Managing Broker/Branch Vice President - McLean, VA
Northern Virginia & D.C. Real Estate

FRAN:  Thanks for your comments.  So what are the big differences up in your neck of the woods?

Sep 07, 2008 05:23 PM #4
Rainmaker
228,170
Linda Jandura
Raleigh Cary Realty - Apex, NC
Realtor, North Carolina Buyer & Seller Specialist

Brian, these costs are very similar to North Carolina's settlement costs. Some companys charge a transaction fee, most do not. I started with a company that charged $150, but they made the AGENT pay for it!  (the buyers side & the sellers side! -I don't work there anymore!)

Since we often see buyer's coming from other parts of the country, thanks for letting us know what the settlement costs are in VA.

 

Sep 07, 2008 07:57 PM #5
Rainmaker
478,987
Ritu Desai
Samson Properties - Ashburn, VA
Virginia Realtor-Fairfax/Loudoun/PW-703-625-4949

Brian- Only disclaimer I would add if the property assessment are higher than the sales price the seller has to pay grantor tax accordingly. Otherwise its a simple math that the seller should be well informed off when they are making their decision on a contract.

Sep 08, 2008 08:02 PM #6
Rainmaker
123,402
Tchaka Owen
Keller Williams Realty - Hollywood, FL

Great info, Brian!

Sep 09, 2008 11:57 AM #7
Rainmaker
312,272
James Downing - Metro DC Houses Team REALTORS®, CRS, GRI, ABR,MRP, MilRes
Real Living | At Home - Washington, DC
When Looking to Buy or Sell - Make the Right Move

might be an old post; but helpful when I needed to check some fees.  Thanks Google  LOL

Aug 18, 2010 07:19 PM #8
Rainer
34,352
Kim Davis
available for employment - Harrisonburg, VA

In the text you say the grantor's tax is 1% of the sales price, but, in the chart I don't think $450 is 1% of 450,000 or that $850 is 1% of 850,000. There seems to be a zero missing.

 

Aug 01, 2011 01:00 PM #9
Anonymous
Pete Leavitt

I wood like to fine out how to determine the sellers cost on a VA loan. Are you able to help with this? Thanks

Jun 21, 2012 04:56 PM #10
Rainmaker
98,887
Rick Phillips
Frankly Realty - Old Town - Alexandria, VA
I care about you and your transaction.

This is useful--thanks for putting it up here.

Jan 25, 2013 07:05 PM #11
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Brian Block

Northern Virginia & D.C. Real Estate
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