REAL ESTATE

Closing Costs for Sellers in Wisconsin: Everything you need to know

It is vital to know the average seller closing cost in Wisconsin so that you know what are you expected to pay for closing your home sale deal. It is believed that on average, the closing costs remain to be around 3% in Wisconsin, excluding the realtor cost. So, if you have a $250,000 home sale in this locality, then you will have to pay around $8,000 as a closing cost.

To know the details like what all does the closing cost include, here we present you all the imperative information.

What is the closing cost?

Seller Closing Costs in Wisconsin means the fees and taxes that the sellers need to bear at the time of selling their home in Wisconsin. This includes an array of costs. The same is levied for the services such as authenticating, transferring ownership, and more. These costs are unavoidable.

Seller costs

If you are thinking that the realtor commission is the only fee you are expected to pay at the time of closing, then you must know that it is not the only expense. However, it is undeniably one of the biggest expenses for people who want to sell their property in Wisconsin. But the good part is, if you want, you can save on this cost. You can go for the Flat Fee MLS service and save on commission. The other option is hiring a discounted res estate agent services to lower your listing commission.

Here we will know the closing costs that the sellers need to cover to sell a home in Wisconsin and the amount you need to pay for it. The Wisconsin seller closing costs are:

  • Title service fees are one of the vital seller closing costs which are usually 0.2%
  • There is also an owner’s title insurance fee which is 0.4% for Wisconsin sellers.
  • Deed transfer tax is another significant closing cost borne by the seller. It is 0.3% for Wisconsin sellers.  
  • Recording fees are a closing cost that demands a little amount. It is as low as just 0.01%.
  • The sellers also offer buyer incentives which costs them around 2%

Other than this, there might be some other Seller Closing Costs in Wisconsin too, making the total cost around 3%. The Lender’s title insurance is also a fee usually paid by the buyer. You would have observed that these closing costs do not include realtor fees in Wisconsin. The realtor cost is extra which can be in the bracket of 5 to 6% on average. This cost is also paid by the seller.

While the sellers have to compulsorily pay title closing fees, owner’s title insurance fees, transfer taxes, recording fees, etc as closing costs in Wisconsin, they may also need to pay some optional costs too like buyer incentives, property taxes pro-rated, attorney fees, etc.

Buyers also need to bear some of the closing costs in the process of the home sale. Coming to the buyer’s costs, they pay for the things such as a mortgage, inspection fees, appraisal fees, and more.

The closing costs mentioned above are indicative. The closing costs may change too as per the amount you get in cash for homes. The real estate agent cost can also be negotiated and decide who pays, whether you or the buyer.

Here we explain the costs in detail.

Title service fees

This fee covers the costs of the title transfer as well as the title search. When you begin to sell your home, you need to transfer the legal ownership from your name to the buyer. This is an important fee that makes sure that there are no claims or liens on the property. You can take the help of a real estate agent to do the title search. In Wisconsin, both the buyers and sellers can pay their respective title companies and closing agents.

Owner’s title insurance

Owner’s title insurance is important to make the buyer confident that there is no problem with the property title. In case there are some issues, it covers the legal fees. It can also help you to the extent of covering the home price. In Wisconsin, mostly the seller pays for the owner’s title insurance. Some title companies in Wisconsin follow tiered pricing to find the exact amount as per the home’s value.

Lender’s title insurance

You need to know about this cost too. The lender’s title insurance is critical to protect the bank or financial institution providing a mortgage to the buyer. In Wisconsin, the buyer bears the cost of the lender’s title insurance. The buyer may ask the seller to pay for this too at the time of negotiations. Take the help of a good real estate agent to protect your interest.

Deed transfer tax

A part of your home’s sale price needs to be paid as a transfer tax. Some cities charge their transfer tax. You need to check with the agent and the title company to know the amount of tax you need to bear in your area.

Recording fees

This fee is charged by the city or county to record your property’s deed. It also contains mortgage information. The exact amount varies as per your location. You can negotiate this cost with the buyer and ask him to cover this cost.

Buyer incentives

Buyer incentives are optional cost that helps make the sale easier and appealing for the buyer. If you are having a tough time selling the property, and want to attract buyers, you can consider paying the buyer’s closing costs. You can offer the things such as house repair, free valuable items, and more.

Property taxes

You cannot sell a house in Wisconsin without paying the property taxes for the duration you owned the home. Though the average property tax in Wisconsin is around 2%, it depends on the county. While Menominee has the highest property tax of 3%, Vilas has the lowest of 1%.

You can check with your real estate agent to know the property taxes.

Other sellers closing costs

For Wisconsin home sales, also know some more fees:

  • Homeowners Association or HOA fees
  • Attorney fees
  • Mortgage payoff
  • Prepayment penalties
  • Property appraisal fees

The closing costs are not too big an expense for sellers in Wisconsin, but if you want you can reduce these expenses. In the hot seller’s market, you can ask the buyer to pay some of the closing costs. You can also find cheaper rates for the services such as title insurance. Also, one of the best ways to lower your selling costs is to hire a low fee realtor or use MLS services.