Essential Closing Costs Home Sellers Should Know in Central Ohio

Selling your home in Central Ohio can be exciting, but it's important to be aware of the expenses that come with it. Picture this: you're ready to finalize the sale, but unexpected costs cut into your profits. This is the reality of closing costs, and not preparing for them can lead to some unpleasant surprises.

This guide will explain the typical costs you can expect as a seller in Central Ohio, the reasons for these expenses, and strategies to maximize your earnings.

What Are Closing Costs?

Closing costs are the final expenses required to complete the sale of your home. These include a range of fees, from real estate agent charges to title transfers and legal services. Typically, sellers pay between 6% and 10% of the home’s sale price in closing costs.

Understanding these costs ahead of time can help you budget properly and avoid any last-minute surprises.

Common Closing Costs for Home Sellers in Central Ohio

1. Real Estate Agent Fees

Real estate commissions remain a key expense for many sellers, but recent changes have made them more flexible and negotiable. Sellers are no longer required to cover the buyer’s agent commission, and all commission agreements must be clearly disclosed and agreed upon upfront.

How Much Do Commissions Cost?

Traditionally, commission rates ranged from 5% to 6% of the sale price. However, with the new rules, commission structures vary more widely and are subject to direct negotiation between sellers, buyers, and agents.

Who Pays the Commission?

• Sellers may still choose to pay the buyer’s agent commission, but it is no longer an industry standard.
• Some buyers may now be responsible for paying their own agent’s commission.
• Listing agents still charge a fee for marketing, negotiations, and transaction management, but the rate is now more customizable.

2. Transfer Taxes and Recording Fees

Transfer taxes are local fees for the legal transfer of ownership of your home.

• Cost: These vary, typically ranging from 0.5% to 2% of the sale price in Ohio.
• Who pays? In Ohio, the seller usually covers these, but it's negotiable in the contract.

3. Title Insurance (Owner’s Policy)

Title insurance protects the buyer from any ownership disputes or legal claims. While buyers usually get their own policy, sellers often cover the cost for an owner’s title policy.

• Is it mandatory? No, but it's common practice and often expected in a sale.
• Cost: About 0.5% to 1% of the sale price.

4. Escrow and Closing Fees

Escrow services facilitate the secure handling of funds and documents. These fees also include the final paperwork required to transfer ownership.

• What do escrow companies do?
• They hold funds in a secure account.
• Ensure all contract terms are met before any money changes hands.
• Cost: Between $500 and $2,000, depending on the provider in Central Ohio.

5. Prorated Property Taxes

Property taxes are typically paid annually, so you'll need to cover the taxes up to the closing date.

• How is it calculated? The property tax bill is divided based on the number of days you owned the home that year.
• Example: If annual taxes are $6,000 and you sell halfway through the year, you owe $3,000.

6. Homeowners Association (HOA) Fees

If your home is part of an HOA, be ready for additional costs at closing.

• Unpaid dues: Any outstanding fees must be cleared before closing.
• Transfer fees: Some HOAs charge $200 to $1,000 to process the ownership change.

7. Attorney Fees (If Required)

In Ohio, hiring a real estate attorney to review and finalize the sale is not always required but can be beneficial.

• Cost: Usually $500 to $1,500.
• What do they do?
• Review contracts and closing documents.
• Ensure everything is legally sound.

How to Cut Down on Closing Costs

Closing costs can take a sizable chunk out of your home sale profits, but the good news is that there are ways to cut back on these expenses. Whether through negotiation, strategic choices, or finding cost-effective service providers, you have options to keep more money in your pocket. Here are some practical ways to lower your closing costs as a seller.

Sell Without an Agent (FSBO) — this means no listing agent commission. However, you’ll still need to:

• Pay the buyer’s agent commission (usually 2.5% to 3%).
• Handle marketing, negotiations, and paperwork yourself.

FSBO works best if you have experience in real estate or a buyer already lined up.

Ask the Buyer to Cover Some Costs

• In some deals, buyers agree to cover certain closing costs instead of negotiating a lower sale price.
• This works best in a seller’s market, where buyers compete for homes.

Shop Around for Service Providers

• Get multiple quotes for title insurance, escrow services, and attorneys.
• Some companies offer discounts for bundled services.

Preparing for Closing

As you approach the finish line of your home sale, there are still a few final steps to take before closing day. Proper preparation can help avoid last-minute surprises and ensure everything goes smoothly. Here’s what you need to do before handing over the keys.

1. Review the Closing Disclosure Early

• You’ll get a Closing Disclosure a few days before closing that lists all costs.
• Review it carefully to catch any unexpected charges.

2. Finalize Repairs and Paperwork

• Complete any agreed-upon repairs before closing.

Make sure liens, HOA fees, and taxes are paid to avoid delays.

Final Thoughts

Selling a home in Central Ohio involves more than just finding a buyer. Closing costs can add up, but by knowing what to expect and planning accordingly, you can retain more of your profit.