Relocate to Wisconsin : Yes Virginia...Sellers DO have "Closing Costs" to Pay...

Yes Virginia...Sellers DO have "Closing Costs" to Pay...

   Virginia might be a first time Seller,....a Personal Representative for an estate or a For Sale By Owner...someone not familiar with the costs theCalculator and House Seller incurs in selling a house.   (One first time Seller recently asked us if Buyers would be their closing costs...yicks !) 

    Some people believe without the benefit of take what the Buyers paid, subtract the commission and poof...Profit !  

   Please NOTE...these are charges for the state of Wisconsin and other states may do things differently.

     For the period of time that you , Mr./Mrs./Ms owned you of the utilities and other services..that will include those pro rated for which you have not yet been utility billsbilled...water, sewer, gas, electric, cable,  internet, etc.  The charges for utilities will be researched by the title company and subtracted from your proceeds. It is your responsibility to let service providers know that you wish to discontinue service and the proper date. In the case of gas and electric charges, the billing is changed to the new owner on the day OF closing regardless of whatever date you moved from the property.

   It will be your responsibility to pay the property taxes thru the day before closing. This amount will be  deducted from your do not write a check.  It will also be a credit to the buyer. If your taxes are escrowed wittaxesh your mortgage payment, the escrow will be returned to you within 45 days of closing.

    You are responsible for title insurance.  Ask your Realtor to estimate this charge

for you and if you have it, provide the policy from when you purchased or refinanced the house and the title charge will be reduced.

     The title company may have additional miscellaneous charges for sending out city letters and researching other possible liens...your Realtor can get an estimate of these charges for you before closing.
   Wisconsin has what amounts to a "sales tax" when you sell a house and is called a transfer tax....the rate for this is presently $3/thousand, this is a fee paid by the Seller.

    The real estate commission is also deducted at whatever percentage you agreed when you signed the listing.

 mortgage payoff   If you have a mortgage balance, additional lien ...whether you call it a home equity loan, second mortgage  etc.....also has to be paid in full before you can close. The title company will get these payoffs from your lender to insure that the new owners will receive the property free and clear.

     If you  are just considering listing...ask the Realtor you choose for a "Net Sheet"...that will detail the estimated charges and show you your bottom line profit. Remember, all charges run to the day of closing and if the closing date changes...the charges will change as well.

    Yes costs money to make money in selling your home...and if you or anyone you know is ready to sell their home in southeastern Wisconsin...Call the Hansons for the best of the bottom line profit in your home sale.


Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS

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Comment balloon 15 commentsSally K. & David L. Hanson • October 24 2015 07:42AM


There are lots of fees charged to the seller of a property and you pretty much summed them all up. Great informational blog for potential sellers in your area!

Posted by Nicole Doty - Gilbert Real Estate Expert, Broker/Owner of Zion Realty (Zion Realty) over 2 years ago

Sally and David- this answers a question that many sellers and buyers have!  Good information for them. 

Posted by Kathy Streib, Home Stager - Palm Beach County,FL -561-914-6224 (Room Service Home Staging) over 2 years ago

Sally and David, yes there are difference in closing costs between states, but the buyer and seller always incur some costs, great post.

Posted by Sybil Campbell, REALTOR® ABR, SFR, SRES Williamsburg, Virginia (Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia) over 2 years ago

Hi Sally & David, an interesting explanation of the way property changes hands in Wisconsin. 

Posted by Noah Seidenberg, Chicagoland and Suburbs (800) 858-7917 (Coldwell Banker) over 2 years ago

Sally and David, Sellers need to realize that their Closing Costs could be as much as twice the Buyers Closing Costs.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) over 2 years ago

Sally and David, it's fun to read about the practices in different parts of the country.  Here the buyers, rather than the sellers, pay the title insurance costs. And even in the bloodiest of bidding wars, buyers often volunteer to pay the seller's closing costs!

Posted by Patricia Kennedy, Home in the Capital (RLAH Real Estate) over 2 years ago

Oh Wow Patricia Kennedy  that would happen here when pigs fly !

Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce - Short Sale (Keller Williams 414-525-0563) over 2 years ago

Our sellers don't pay the transfer taxes which makes it fall to the buyer. You have made a good case to have an agent right there beside you.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) over 2 years ago

Good morning Sally. Yes, it cost money to sell and money to buy. It is unfortunate however when a listing agent doesn't do a good job going over closing cost for a seller, as that can cause last minute issues.

Posted by Joe Petrowsky, Your Mortgage Consultant for Life (Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709) over 2 years ago

Hi Sally.  We have a $4.56/thousand "transfer tax" in Massachusetts.  Yuck!

Posted by Conrad Allen, Webster, Ma, Realtor (Re/Max Professional Associates) over 2 years ago

Besides more snow, attorneys involved in every transaction....and higher taxes..Conrad Alleb...I forget what are the other advantages to living in Massachusetts instead of Wisconsin ?

Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce - Short Sale (Keller Williams 414-525-0563) over 2 years ago

Great information for sellers, Sally and David.  They now understand a little more of their upcoming costs.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) over 2 years ago

Thanks for writing this post.  Many people do not understand that sellers have their definite share of closing costs to pay between escrow fees, title fees, title insurance, pro-rated property taxes, fees to the city, county and state, etc.  I find on average seller's closing costs usually ballpark around 1.5% of the purchase price.
And then if there are any credits being issued to the buyer, that number goes up quite a bit more.

Posted by Ralph Gorgoglione, Hawaii and California Real Estate (800) 591-6121 (Maui Life Homes / Metro Life Homes) over 2 years ago

Hi Sally and David - working with a real estate professional who understands the local market is so important and your posts continually underscore that knowledge which is so important to sellers and buyers alike.  

Posted by Michael Jacobs, Los Angeles Pasadena Area Real Estate 818.516.4393 (Coldwell Banker Residential Brokerage) over 2 years ago

Good morning Sally K. & David L. Hanson,

We do not have a transfer or conveyance tax in Texas and are voting right now to prevent one from being imposed! It does show each state has their own ways of levying taxes in a real estate transaction.

Posted by Dorie Dillard, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.346.1799) over 2 years ago