This question has come up so often in the past few months I thought it was high time I wrote this post. Even though the market is picking up sellers are not in an enviable position at the moment. They are not making huge profits when they sell their homes in Iowa City.
It’s no wonder they’re taking a long hard look at their bottom line when it comes time to list their homes in Iowa City. The last thing anyone wants at closing is a surprise, especially when that “surprise” entails bringing a check for a couple of thousand dollars to close the deal.
Below is a list of the closing costs you can expect when you sell your house in Iowa City. For the purpose of this post I’m going with the nice round number of $200,000 for the sales price. The 5% commission rate is what you pay when you list with Cardinal Realty. Real estate commissions in Iowa are negotiable, you may pay more, (or less), depending on the brokerage. Real taxes in Johnson County are paid 1 year in arrears and you will need to pay them up to the date of closing when you sell a home in Iowa City. Below is an estimate, depending on when you close this number will change. Calculating 1 year’s taxes is a safe estimate, it won’t vary too much from there.
Estimated Closing Costs on a House with a Sales Price of $200,000
Real Estate Commission ( 5 %) $10,000
Property Taxes $4,000
(Estimate for 1 year real estate taxes, this varies by school district).
Abstract Update $300
(Estimate of fee to attorney for updating the abstract)
Transfer Tax $319,20
(Iowa Real Estate Revenue Tax Calculation, Johnson County)
Deed Preparation $65
(Fee to attorney for the Warranty Deed)
Attorney Closing Fee $150
(Fee to attorney for preparing the HUD-1)
Overnight Mailing Fee or Bank Transfer $20 – $25
(Fee for sending the mortgage pay-off to your bank).
Remember, these are estimates and don’t include any mortgage pay-offs, included are only the costs associated with selling your house in the Iowa City area. Quick disclosure: These numbers are purely informational and need to be verified with a professional before making any major financial decisions. Also, there may be variances from brokerage to brokerage so you should ask your Realtor for a sellers net sheet at the listing appointment.
The spring market has kicked in big time in Iowa City. Are you ready to sell your home? Give me a call, I’d love to hear from you!
Cardinal Realty charges a low 5% commission. You’ll receive a net sheet at our first meeting and there will be no surprises at closing.
