Selling a House in Delaware? You’re on the Hook for These 9 Closing Costs and More
Disclaimer: This article provides an estimate of a seller’s closing costs that is meant for educational and research purposes only; our calculation is not a guarantee.
As a seller, your home sale price and proceeds are very different numbers. You’ll need to subtract your closing costs to determine how much money you’ll walk away with after the sale. So, what are closing costs in Delaware?
In Delaware, sellers typically pay 6% to 10% of the home’s sale price in closing costs. It’s customary for the seller to pay for closing costs like title search, title insurance, and transfer taxes.
We’ll break down seller closing costs with insight from Peggy Centrella, a top Delaware real estate agent ranked in the top 5% of real estate agents in her market area. Trust us — you’ll want a heads-up on these profit deductions, so you don’t get sticker shock when viewing your settlement statement at the end of the sale.
1. Loan payoff amount
You must pay off your mortgage before you can transfer the title to a new owner. Loan payoff includes the remaining principal and interest owed up until closing.
2. Property taxes
Delaware has one of the lowest median property tax rates in the country. Property tax rates vary by tax districts within the counties. For a general overview, here are the average property tax rates for each county:
New Castle County: 0.55%; see the tax rate for your district here
Kent County: 0.40%; see the tax rate for your district here
Sussex County: 0.27%; see the tax rate for your district here
3. Reconveyance fee
Once you’ve paid the mortgage in full, the lender sends you a reconveyance deed as proof. The seller is responsible for paying the reconveyance fee to obtain this official document.
