Closing Costs - Sellers
As you consider selling real estate in Ocean City or the surrounding areas it is helpful to know what to expect in regards to closing costs. This will enable you to properly position your property and market it accordingly based on the net price you are trying to achieve. Closing costs will vary from deal to deal, however there are some common similarities that you will find outlined below:
Every time a property transfers in the state of Maryland the state and local municipalities charge transfer taxes on the sale, which total 1.66% of the purchase price. These transfer charges are typically split equally between the Buyer and the Seller, however they are a negotiable item.
Sellers are responsible for the commissions associated with the property sale. Commission rates typically range from 5% to 6% depending on the property and the Ocean City Realtor you choose to work with. The commissions are paid at settlement from the proceeds of the property sale.
The Seller is responsible for the costs associated with releasing the current deed so the property can transfer. This cost will vary depending on the property and the title company doing the settlement, however it typically ranges from $125 to $150.
You will be reimbursed for any items that you have paid in advance, such as property taxes and condominium fees. These items will be prorated down to the day of settlement and you will be reimbursed for the unused portion.
Non-Resident Withholding tax
If you are not a resident of Maryland you could potentially have Maryland withholding taxes that you will need to address for the property sale. If you are a non-resident and there will be any type of net proceeds from the sale on the settlement statement you will need to file for a non-resident withholding exemption. The title company that is handling your property sale can assist you with this.
We would be glad to have a preliminary settlement statement prepared for you so you know what to expect in regards to closing costs. If you have other questions or want to discuss this in greater detail feel free to contact us directly anytime at 443-552-7579.