Closing Costs in Utah: A Guide for Sellers
If you’re selling your home in Utah, you’re likely curious about the costs involved in closing the deal. Closing costs are the various fees and expenses associated with the finalization of a real estate transaction.
These can include everything from loan payoff amounts to taxes and service fees. In Utah, understanding these costs is essential for accurately budgeting your sale and avoiding surprises at the closing table. Our concise guide will break down how closing costs work in Utah, giving you a clear picture of what to expect when selling your property in the Beehive State.
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 fees and expenses involved in finalizing the sale of your property. These can encompass a variety of charges, such as property taxes and insurance, which are generally standard for homeowners and sellers. However, some costs, like transfer taxes, can vary depending on the location of your property at the time of sale.
Mortgage/Loan payoff amount
Before selling your home, one of the key financial obligations is settling the loan payoff amount on your mortgage. This amount represents the remaining balance due on your loan, which must be fully paid to close out the mortgage.
The loan payoff amount typically includes the outstanding principal balance as well as any interest that has accrued over the course of the loan. Additionally, there may be other associated fees, such as prepayment penalties or administrative charges, that must be covered to finalize the terms of the loan and proceed with the sale.
Property taxes
According to WalletHub, Utah ranks sixth in the country in terms of property taxes, above states like West Virginia.
Real estate in Utah is taxed at a rate of 0.52%, with a median home value of $509,900. To get a better idea of what you might owe, consult a property tax calculator.
