When it comes to selling a home in the Nashville Real Estate market, the cost to sell your home always adds up. Seller’s closing costs are an expenditure consisting of taxes, fees, prepayments, and service costs that vary from location to location. The closing costs can differ because of variations in lender costs, local tax laws, company fees including title & settlement.
To pay the closing cost, sellers in Tennessee pay an average of 1-3% of their home’s sale price. However, at the time of selling a home in Nashville, both buyer and seller need to pay closing costs that include expenses required for a Homes for Sale in Nashville TN
As per the purchase agreement, there are several fees involved in the closing cost process. Let’s discuss each one.
Title InsurancIf in case any outstanding lien gets missed during the title search, the title insurance protects the home buyer from financial loss. The title insurance cost varies according to the home price. For a home worth $1,70, 700, title insurance would cost around $1000.
To ensure the home for sale in Nashville is free from any kind of damage, Pillar to Post Home Inspection Process is carried out. The home inspection cost between $300- $500.
Generally, the buyer is responsible to cover the cost of the termite inspection. In case, if the buyer is obtaining a VA loan, it doesn’t require the buyer to pay the inspection fee. Since these wood-destroying insects are common in Tennessee, a termite inspection process is required. The average inspection cost between $75 – $125.
When a borrower is financing a home, the lender requires an appraisal. The buyer is responsible to pay the appraisal cost. But the cost is negotiable and could be paid by the seller as well. A single-family home appraisal will cost between $300 – $450. The payment is made directly to the appraiser; therefore, it is a non-refundable amount even if the loan is not secured.
The survey is generally requested by the buyer’s lender. The survey will examine the legal boundaries of the property. The cost of the survey will vary according to the property and lot size. However, the survey can cost anywhere between $350 -$500.
A credit report is a cost for mortgage lenders to verify the credit history of a home buyer in Nashville, TN.
Loan Payoff Costs
The cost of loan payoff includes loan application and assumption fee, prepaid interest for the first month, and loan origination fees. The loan payoff cost varies around 0.5 – 1.5 % of the home sale price.
Outstanding amounts include bills such as taxes, homeowner insurance, HOA fees which keep varying.
Transfer tax is the charge applied to transfer the home’s title to the buyer. In Tennessee, the charges include the rate of $0.37 per $100 of the property’s sale price.
Recording fee includes title company, attorney filling the property deed transfer with the county, and escrow agent. Charges are around $100, though it may vary from county to county.
A mortgage tax is assessed at a rate of 11.5 cents per $100 of the amount of property.
Other Cost While Selling A Home In Nashville, TN
Despite a home buyer is responsible for paying the closing cost, the seller does need to pay a significant amount to the realtor you have hired including repair fixes. Also, if there is damage in your house while home inspection, you as a seller will be responsible to pay. Even for small cosmetic and maintenance issues, the buyer may ask you to pay off some cost.
As a seller, you will also be paying commission fees to your agent as well as the buyer’s agent. These will cost 6% of the home’s sales price.
Seller’s and Buyer’s Closing Costs in Tennessee
Seller Closing Costs
As a seller, the closing costs cover the bills and payments owned on your home. Plus, the fee for transferring homeownership to the buyer. Following are the costings:
- Settlement or attorney fees
- Buyer’s title insurance
- Recording fees
- Mortgage payoff and prepayment penalty
- Outstanding cost owed on the property (HOA fees and utility bills)
Buyer Closing Costs
The buyer’s cost covers the amount to secure a mortgage and fulfill the requirement of their lender. Following are the costings:
- Origination fee
- Application fee
- Credit report fee
- Title search fee
- Lender’s title insurance
- Home inspection fee
- Appraisal fee
- Prepaid interest
- Mortgage tax (Tennessee recordation tax)
- Transfer taxes
- Survey fee (if applicable)
- Escrow fee (if applicable)
- Attorney fees (if applicable)
Above are the costs needed for both sellers and buyers while Houses for Sale in Nashville. So, the key thing is selling your home will cost somewhat more than you have calculated. If you are a home seller in Tennessee, we want you to remain updated on all such information related to closing costs.
At Zivak Realty Group, We are the professional team of realtors who assist in the overall home buying and selling process in the Nashville region. With the Zivak group, you can get expert assistance on how to sell a home at the highest possible price and save on closing costs as well.
Connect with Our Real Estate Expert Advisors today to know the current Real estate market condition in Nashville and to find out how much can save on the closing day.