Closing costs are the expenses, fees and taxes associated with the sale of a home. Closing costs will vary from transaction to transaction depending on the terms and structure of the real estate contract. Below is an overview of the standard closing costs you can expect when selling a home or condo in Ocean City, MD and the surrounding areas.
Transfer and Recordation Costs
- State and local municipalities charge transfer and recordation fees on every property sale in Maryland. These fees total 1.66% of the purchase price in Worcester County, Maryland and are typically split equally between the Buyer and Seller.
- The Seller is typically responsible for the commissions associated with the property sale. Typical commission rates in the Ocean City real estate market range from 4% to 6% of the contract price.
- If the property is part of a homeowners or condominium association the Seller is obligated to provide the Buyer with a resale package from the respective association. The resale package includes information on rules and regulations, budgets, insurance, bylaws and a resale certificate for the sale. Resale packages typically cost between $250 and $350.
- If there is a mortgage on the property these are the charges associated with securing the release of the mortgage and recording the property transfer.
- Amounts owed on any outstanding mortgages against the subject property will be collected from the proceeds of the sale and paid at the time of closing.
- Sellers are reimbursed at closing for any items they paid in advance, such as property taxes, HOA fees and utilities. These items will be prorated to the day of settlement and the Seller is credited the difference.
Non-Resident Withholding Taxes
- If you are not a resident of the State of Maryland you could potentially be subject to non-resident withholding taxes. There are a number of factors that go into the calculation of non-resident withholding taxes, which is beyond the scope of the article. I would be glad to schedule a call to discuss your specific situation with you.
Total closing costs for the listings I represent average around 6% of the purchase price. This does not include the reimbursements referenced above, which will ultimately decrease the closing cost percentage.
If you have any other questions or would like to discuss selling your home or condo in Ocean City in greater detail, feel free to contact me directly anytime at 410-213-3591 or via email below.