Closing Costs in Minnesota: A Guide for Sellers
Selling your home in Minnesota? As you prepare for closing, you’ll encounter closing costs—fees tied to finalizing the sale. These expenses cover services like real estate commissions, legal work, and taxes—some of which are typically shared between buyer and seller.
In this quick guide, we’ll discuss the specific closing costs Minnesota sellers can expect when selling their property. Understanding these fees ahead of time can help you better prepare for the financial aspects of your sale.
Disclaimer: This article provides estimates of a seller’s closing costs that are meant for educational and research purposes only; our calculations are not a guarantee.
What are closing costs?
Closing costs are the various fees you’ll encounter when wrapping up the sale or purchase of a property. These can include a range of expenses, such as property taxes or insurance, with many being standard for sellers and homeowners. However, certain fees, like transfer taxes, can vary depending on where your home is located when the sale is finalized.
Mortgage/Loan payoff amount
When selling your home, the “loan payoff amount” is the remaining balance on your mortgage that must be settled before you can complete the sale. This amount includes the unpaid principal balance, as well as any interest that has accumulated over time.
Additionally, it may also cover extra fees, such as late payment charges, that need to be addressed to fully close out the loan.
Knowing your loan payoff amount is essential because paying off the mortgage is a key step in the process of selling your home. Before the sale can be finalized, the mortgage lender will require this amount to be cleared, ensuring the title can be transferred without any lingering debt attached to the property.
Property taxes
According to WalletHub, Minnesota ranks 32nd in the country in terms of property taxes, placing it above states like South Dakota and Massachusetts.
Real estate in Minnesota is taxed at an average rate of 1.02%, with a median home value of $355,000. To get a better idea of what you might owe, consult a property tax calculator.
