Most conversations in real estate focus on buyer closing costs, but home seller closing costs are a real thing. When selling your New Orleans home, you can expect several closing costs that will reduce your net profit.
What home seller closing costs should you expect in New Orleans?
Mortgage payoff and cancellation fee
The title company handles getting the loan payoff from your mortgage company. A mortgage cancellation fee is paid to the conveyance office and passed along to you as a closing cost.
Prorated property taxes
Taxes are paid in advance in Orleans Parish and sellers get a credit at the act of sale. In all other parishes, the seller pays their portion of the annual property taxes based on the number of days in the year that they own the property.
Property transfer tax
In Orleans Parish, sellers have assessed a property transfer tax of $325 at closing.
Settlement and/or attorney fee
Part of selling your property is ensuring that the title is free of liens and encumbrances. To do this, the real estate closing attorney will perform an abstract and title review. A Lien Search must also be done to ensure there are no unrecorded liens or code violations associated with the property.
Broker marketing fee/commission
Of course, there are the Realtor commissions. Home sellers generally pay their listing broker a contracted commission and that broker then shares the fee with the buyer brokerage.