8 Closing Costs North Carolina Sellers Customarily Pay
If you’re selling a home in North Carolina, you’re likely wondering how much you’ll pay in closing costs at the end of the sale. Nationally, closing costs for sellers average anywhere from 6% to 10% of the total sale price. According to Bankrate, the average total closing cost for home sales in North Carolina was about $3,406.
However, these figures are only averages. For an accurate estimate of what you’ll owe after you’ve sold your home, you need to dig into the details. With help from a top local real estate agent, we’ll help detail North Carolina seller closing costs so you can tally up your home sale fees.
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North Carolina sellers are on the hook for these closing costs
Some closing costs are dependent on the specific circumstances of the sale. However, North Carolina sellers can almost always expect to pay the following expenses:
Mortgage payoff
If you’re one of many North Carolina residents who have a mortgage, you’ll need to pay the amount you owe while finalizing your home sale.
Ideally, your home sale should cover your outstanding mortgage and closing costs. Currently, the short housing supply due to high lumber costs and a nationally booming real estate market has resulted in a 54.54% percent increase in the average North Carolina home price during the last five years. This appreciation means that if you’ve owned your home for several years and have built substantial equity, you may be able to sell it for more than your outstanding mortgage — pocketing some profit after you’ve covered closing costs.
Property taxes
In North Carolina, real property taxes (or “ad valorem” taxes) are charged by counties and municipalities.
By state law, property taxes are prorated to the day of closing, meaning that sellers only need to pay taxes for the amount of time they owned the property during the year. Because these taxes are under the authority of local governments, the cost can vary depending on where you live. To find out about your local property tax rates, see this page from the North Carolina Department of Revenue.
In some real estate transactions, sellers and buyers negotiate over how much each party will pay in property taxes. However, Autumn Dubois, a top-selling agent in Raleigh, points out:
“Generally speaking, property taxes are not something that comes highly into the discussion … Property taxes are really reasonable in North Carolina. We get a lot of people who move in from out of state, and our taxes are negligible compared to where they came from.”
Transfer tax
The state of North Carolina also charges a transfer or excise tax, a one-time fee home sellers pay at the date of closing. According to article 8E of the state’s enacted legislation statutes, the excise tax rate is $1 for every $500 of your property’s value, or 0.2% of the total value of your home.
Additionally, some counties, including Dare County and Perquimans County, charge an additional land transfer tax of up to 1% of your property’s value.
Real estate agent commissions
Typically, the most expensive closing cost North Carolina sellers pay for is agent commission. Like most places in the country, sellers in the Tar Heel State customarily pay the commission for both their agent and the buyer’s agent. Nationally, real estate agent commissions usually cost sellers about 3%-5.8% of their home’s value.
While it is possible for homeowners to sell their homes without an agent, “For Sale by Owner” sellers typically allocate the money saved on commissions to marketing, home staging, Multiple Listing Service (MLS) access, and other services normally included in an agent’s commission.
Furthermore, according to our research, the top 5% of real estate agents in the United States sell homes for up to 10% more than their peers, meaning that an excellent agent will likely net you more money on your home sale even after charging a commission.
To connect with top-performing agents in your area, plug your home details into HomeLight’s Agent Finder. We’ll match you with the three best agents for your unique home sale.
