Pamela Madre
The Pamela Madore Group
Keller Williams Realty
How Much Are A Seller’s Closing Costs?

Seller closing costs will vary from state to state and area to area within the state. My explanation here will be specific to Amarillo even though other areas may be the same.

A great Realtor will provide you with a seller’s net sheet when you list your property so you will know what to except. In order for that information to be the most accurate your Realtor will need to know the approximate payoff of your mortgage if you have one and the balance in your escrow accounts.

The first closing cost to talk about is the real estate commission. By law the real estate commission cannot be set in stone and is a negotiable item. From a practical standpoint, most real estate commissions are the same for the area. The norm for some areas of the country is 7% or 8%. In Amarillo the norm is 6% of the sales price.

The next largest item is the title insurance policy. It is typical for the area that the seller provide the buyer with a title insurance policy. This is a state mandated amount and does not vary from Title Company to Title Company. For instance, on a $300,000 the title policy would be $1983. In addition, the title company will charge a closing fee of anywhere from $150 to $200. The average at the moment seems to be $195.

You will also have attorney fees for the drawing up of the deed and the satisfaction of the mortgage. This fee varies from attorney to attorney but my educated guess is about $250. You will have recording fees of maybe $125.The title company will take care of the paperwork so you aren’t required to provide it. Just pay for it. 🙂

From here things area negotiable. The next item would be the survey of the property. Typically the buyer will ask the seller to provide one. Depending on the size of the lot they could range from $450 (house lot) to ???? on acreage. When you bought your property if you got a mortgage then you would have gotten a survey. As long as you haven’t put anything “permanent” on the property we can re-use the survey. If you added a back patio, however, there will need to be a new survey.

Most often a buyer will ask for a one year home warranty. Depending on coverages, they could range from $350 to $650. The normal amount asked for is $500. A great Realtor will put seller’s coverage on it as soon as they take the listing. The cost is $60 and isn’t paid until closing but if anything should go wrong between the signing of the contract to the closing table you are covered. This is especially helpful when a buyer does inspections. If the inspector finds anything that needs to be taken care of, as long as it is a covered item, the warranty company will fix it for a $60 service fee.

The last item is 100% negotiable. Buyers often ask for an amount of money to help pay for their closing costs. As I said, it is negotiable, but sometimes it is the only way for the house to sell.

A great Realtor will always warn of the unknown. In my net sheets I always add an “oops” column. These may be things I forgot or additional items charged by the title company or a myriad of other things. For a $300,000 house I would put $300.

Here is an example of a net sheet. You might have to magnify it to see it.


Those are the closing costs. Other expenses you may incur would be any repairs that the buyer or the lender ask for. Those are things that aren’t known until the inspections are done.

Your taxes will be prorated from Jan 1 to the day of closing. If you have a deficit in your escrow account it will be money owed or if you have too much you will get a refund. You will get a refund of the un-used portion of your insurance policy.

One more thing--if you have an FHA loan you will need to pay the interest for the entire month we close in no matter the day of closing.

Whenever I write anything like this I want to put another “oops” fund in here. What could I have forgotten? That is my disclaimer.

The greatest thing you want your Realtor to be is a great negotiator. You will need it.


Pamela Madore
The Pamela Madore Group
Keller Williams Realty
3955 S. Soncy
Amarillo, TX 79119