The closing is the culmination of the contract. This is the event at which both buyer and seller sign all the appropriate paperwork to convey ownership of the property to the buyer
Just prior to closing (probably the day before) your agent will receive a copy of the settlement statement. This is a form which has an explanation of all money that is involved the closing process. Your agent will review this with you and explain the numbers and what they mean.
Typically, the seller will have the following expenses on their side of the settlement statement:
- Inspection and repairs cost- This will vary according to the contract.
- Conveyance fee- This is paid to the county for conveying the property to the buyer. This cost is $4.00 per $1000 of the sale price in Athens County. ( $100,000 house-conveyance would be $400.00)
- Pro-rated taxes- Property taxes are paid one year behind in Athens County. At closing, the taxes for the previous year are paid in full and a credit is given to the buyer for the time the seller lived in the house in the current year. Your agent will further explain this process to you as it is fairly complex.
- Real estate marketing fees-commonly known as commission. This is usually 6% of the sale price at which you agreed to sell your house.
- Deed preparation-This is the cost to an attorney to prepare a deed for you to transfer to the buyer. Usually ranges from $35 to $75.
There will also be some miscellaneous costs such as recording fees, but the above costs will generally be the main costs involved.
After the buyer and seller both sign all the appropriate forms at closing, the buyer now owns the house. The seller may have the right to live in the property for a certain amount of time after closing, this will have been agreed upon as part of the purchase contract.