How much are seller closing costs in north carolina?

Seller closing costs in North Carolina typically range between 6-10% of the total sales price when using a real estate agent. These costs can vary based on factors such as the sales price, negotiations with the buyer, and specific transaction details. Common seller closing costs include real estate agent commissions, attorney fees, and property taxes. Continue reading to learn more and discover how to avoid paying closing costs!

Table of contents

1. How much are seller closing costs in North Carolina?
2. Common closing costs for sellers in North Carolina
3. How to calculate seller closing costs North Carolina
4. Who pays closing costs in North Carolina?
5. How to avoid paying closing costs North Carolina
6. Is it possible to sell a house and not pay closing costs North Carolina?

How much are seller closing costs in North Carolina?

In North Carolina, seller paid closing costs are fairly reasonable compared to other states. Aside from paying off your existing loans or property liens, the most significant expenses typically include real estate agent commissions and any agreed-to seller concessions offered to the buyer in the sales contract (if applicable). These closing costs are detailed on the Seller Closing Disclosure (or HUD Settlement Statement for cash transactions) at closing.

Common closing costs for sellers in North Carolina

The following seller paid closing costs are calculated and coordinated by the closing attorney’s office. Seller paid closing costs are deducted from the seller’s proceeds from the property sale, thus preventing the need for a seller to come up with additional funds prior to closing.

Loan/Mortgage Payoffs (and any other outstanding liens)

In North Carolina, the closing attorney will run a title search to discover any existing loans, liens, or judgments associated with the property. They will order payoffs to ensure that any outstanding balances are fully paid off and satisfied, allowing a clean deed transfer.

Real Estate Commissions

If you are using a real estate agent to sell your house, the seller is responsible for paying real estate sales commissions for both the buyer’s agent and the seller’s agent (also known as the listing agent). The commission percentage can vary from brokerage to brokerage, but typically, the total real estate commission ranges between 5% and 6% of the total purchase price, with each agent receiving between 2.5% and 3%.

Excise Tax/Revenue Stamps

The State of North Carolina charges an excise tax (sometimes referred to as revenue stamps) on the transfer of real estate in the amount of $1.00 per $500.00 of the sales price. Excise tax is customarily paid by the seller, but payment is dictated by the sales contract and can be negotiated for either party.

How to calculate excise tax in North Carolina

Suppose you sell your Raleigh, NC house for $500,000 in 2024. Your excise tax can be calculated as follows:

$500,000 sales price x .002 (or $1 for every $500 of revenue) = $1,000

Property taxes

County and city property taxes will be prorated according to the number of days the seller has owned the property within the current calendar year. If property taxes for the current year remain unpaid, the seller is responsible for reimbursing the buyer for taxes owed during their ownership period. Conversely, if property taxes have already been paid for the current year, the buyer will reimburse the seller for taxes paid during their ownership tenure. These pro-rations will be reflected on the Closing Disclosure or HUD Settlement Statement at closing.

HOA Dues & Transfer Fees

If you live in an Homeowner’s Association (HOA) community, your HOA dues will be prorated at closing according to the payment status, whether monthly, quarterly, or annually. If the HOA requires a transfer fee to new owner, it is typically covered by the seller, but this can be determined by the terms of the sales contract and may be subject to negotiation. These transfer fees, usually amounting to no more than a few hundred dollars, are payable to the HOA management company.

Document Preparation

In North Carolina, it’s advisable to have an attorney prepare the deed transferring the property to the buyer, along with other necessary seller documents for tax purposes. Typically, seller document preparation costs range from $300 to $500, depending on the number of sellers involved. However, preparing documents for an estate, heirs, or a trust may incur higher expenses.
Unless otherwise specified, the closing attorney typically represents the buyer in a purchase, not the seller. It’s important to note that the preparation of a deed and other seller documents by the closing attorney does not imply any additional legal representation for the seller.

How to calculate seller closing costs North Carolina

Using the example above, here is a full breakdown of all potential closing costs when selling with a real estate agent. In this example, let’s say the homeowner still owed $200,000 on their existing mortgage:

Who pays closing costs in North Carolina?

Buyers and sellers each have their own unique closing costs to complete a home sale. We’ve covered the seller closing costs in the previous section. As for buyer paid closing expenses; in North Carolina, buyers usually cover expenses such as title and closing service fees, owner’s title insurance policy, transfer taxes, attorney fees, recording fees, prorated property taxes and HOA dues, mortgage fees, appraisal fees, and appraisal fees.

How to avoid paying closing costs North Carolina

For sellers who are looking to avoid paying closing costs you can opt to sell your house to a real estate investor who is willing to pay for all seller closing costs. Real estate investors (also known as house flippers or home buying companies) are usually more flexible and willing to cover seller closing costs if they view your property as a good investment. Selling directly to a real estate investor will also eliminate sales commissions owed to a real estate agent.

Is it possible to sell a house and not pay closing costs North Carolina?

Yes, when selling directly to a buyer without the use of a real estate agent, it is possible to avoid paying closing costs and real estate commissions. Be sure to research reputable home buying companies in your area to find a cash home buyer who will buy your house and pay your closing costs.

These findings apply to all cities and towns in North Carolina, including Raleigh, Durham, Fayetteville, Johnston County, Sanford, Burlington, and surrounding areas.

Author: Jason Hill

I am a seasoned real estate agent and investor with nearly a decade of experience buying and selling homes in North Carolina. As the founder of Freedom Choice Realty & Investments my mission is to deliver simple and hassle free selling solutions to North Carolina homeowners. With the ability to either list your house or buy it as-is we have a unique offering that caters to those looking for ways to sell their house fast and hassle-free in North Carolina.