Closing the sale of a home comes with big expenses, and neither the buyer nor the seller get away scot-free. When selling your home in Ohio, you can expect to pay 1-3% of the sale price at closing, which includes various fees, taxes, and other costs. The buyer, on the other hand, will have to pay 3-4%.
While this sounds like a better deal for the seller, remember that you are also responsible for paying the realtor commission for both your agent and the buyer's agent at closing.
Commission fees in Ohio cost an average 6% of the sale price — meaning in total, you should budget for 7-9% on closing day.
Luckily, there are ways to drastically lower what you pay at closing by working with a full-service, low-commission realtor.
With Clever Real Estate, you'll get to work with a top agent in your area for a fraction of the cost. Clever has high-performing Partner Agents across Ohio who charge reduced commissions, saving you thousands on the overall cost of selling your house.
Get in touch to schedule a free, no-obligation consultation and learn how you can save big on your home sale.
So, what can you expect to pay in closing costs when you sell your home? Here's everything you need to know.
What are closing costs?
Closing is the final step in the home selling process. During closing, paperwork is completed, payments are exchanged, and ownership of a property is transferred from the seller to the buyer.
A third party, such as a title company, escrow agent, or attorney will facilitate this transaction and make sure that all payments and official documents are completed.
Closing costs refer to the expenses associated with this process.
Both the buyer and seller pay some closing costs. While the seller's expenses mostly involve transferring the title and paying off outstanding money owed, the buyer's are generally associated with securing a mortgage.
How much are closing costs in Ohio?
The total cost to close a home sale ranges from 1% to 7% of the final price. This amount covers various expenses and is divided up between the buyer and seller.
In Ohio, the seller can expect to pay about 1-3% of the final sale price, while the buyer typically pays somewhere in the range of 3-4%.
Remember, though, that these costs don't account for realtor commission fees. As the seller, you'll still be responsible for both agents' commissions, which will be an additional 6% on average.
How to Calculate Your Closing Costs in Ohio
To get a better idea of what this will mean for your closing costs, let's look at an example.
According to Zillow, the median sale price in Ohio is $145,500 (as of July 2019). If you sell your home for this price, you could expect to pay $1,455 to $4,365 in closing costs (1-3% of the total).
Again, this estimate doesn't include realtor commission fees. If you pay the average 6% commission, you'll add $8,730 to your bill, bringing the total cost to close to $10,185 to $13,095.
What's included in Ohio closing costs?
While buyers and sellers have separate closing costs, who pays what is not set in stone. As part of negotiations, a buyer might request that you cover some of their closing costs. To know if that's a good deal or not, you'll need to be familiar with all possible expenses and how much they are.
Title search: $250-$500
This searches the property's records to ensure that no one else besides you has a claim to the property and that is clear of liens.
Title insurance: Varies, $800-$1000 on average
Title insurance protects the buyer and lender in case a dispute over the title arises after purchase. It guards against damages including lawsuits, claims, or legal fees resulting from a claim over who owns the property.
The cost will depend on the sale price, but for a home worth the median Ohio sale price ($145,500), title insurance would cost an estimated $820.
Home inspection: $300-$500
The home inspection happens before closing. It verifies the condition of the property and checks for any issues requiring repair.
An appraisal report verifies the home's value. This is usually required by the lender, and lets them know that the property is worth the amount being borrowed. Note that this fee is paid to the appraiser for their work. The buyer won't be able to get it back even if the sale falls through.
A survey shows where the legal boundaries of the property are, also called the property lines.
Credit report: $25-$50
This fee is so the lender can run a credit history and check on the buyer.
Loan payoff costs: Varies, around 0.5-1.5% of the sale price
These cover the lender's costs during the mortgage underwriting process. They include loan origination fees, application and assumption fees, and prepaid interest.
Mortgage payoff and prepayment penalty: Varies
At closing, the seller will pay any remaining balance on their mortgage.
Some lenders charge a penalty for paying off your loan before the end of its term. Check with your lender to see if you'll be subject to such a penalty and what the cost would be.
Outstanding amounts owed on the property: Varies
This includes outstanding bills, like utilities, property taxes, homeowners insurance, and HOA fees (if applicable). For the seller, these will be prorated up until the closing date.
Transfer taxes: Varies
Transfer taxes are charged when you sell your home, and are based on the final price.
Ohio charged $1 per $1,000 of the value of the property sold. For example, if you sell your home for $150,000, you should expect to pay a $150 transfer tax.
Recording fees: Varies
Recording fees pay for the escrow company, title agent, or attorney to file the deed for the property with the county. These costs vary and are set by each county.
Settlement fee: Varies, around $2 per $1,000 of the sale price
The settlement fee is paid to the title company or escrow agent for their services facilitating your closing. This fee is typically $2 per $1,000 of the sale price.
Ohio does not require a real estate attorney to be present at closing. If you decide to use your own, attorney fees vary.
Other Home Selling Costs in Ohio
When selling your home, there are significant expenses you should keep in mind in addition to closing costs, including repairs and realtor commission fees.
Depending on the condition of your home, issues may arise during inspection. Any serious defects will need to be repaired before the sale can close, as required by lenders.
Sellers typically pay the entirety of both agents' commission fees, adding an average 6% in commission to your closing costs.
Working with a low-commission agent is a great way to save if you're looking to reduce how much you'll spend overall.
Who pays closing costs in Ohio?
Buyers and sellers are both responsible for costs at closing. Here's what each can expect to pay.
Typical Seller Closing Costs
The seller's typical costs include taxes, fees to transfer ownership, and paying off bills and mortgage balances. They include:
- Mortgage payoff and prepayment penalty (if applicable)
- Outstanding amounts owed on the property, such as HOA fees and utilities
- Transfer tax
- Recording fees
- Settlement fees
Typical Buyer Closing Costs
Most costs for the buyer are focused on securing a mortgage and purchasing insurance on the home. These include:
- Loan origination fee
- Loan application fee
- Credit report fee
- Title search fee
- Lender's title insurance
- Home inspection fee
- Appraisal fee
- Prepaid interest
- Survey fee
- Settlement fee
Should you pay the buyer's closing costs?
In some markets, offering to pay the buyer's closing costs can be a good way to drum up interest in your home. In a seller's market like Ohio, though, this probably isn't necessary.
However, closing costs are negotiable. If you want to make your listing more competitive, you could consider covering some extra costs at closing. For guidance, talk to a professional realtor about your individual property and your financial goals.
Key Takeaways for Ohio Home Sellers
Sellers are often surprised by how much their costs actually end up being.
Remember that you'll be responsible for paying off your mortgage, taxes and fees, settling payments on the property, and both agents' commission fees.
Your final expenses will vary depending on how the sale plays out, so you'll want to make sure to budget enough.
To best prepare yourself, talk to an experienced real estate agent who can guide you through the process and advise you on how best to approach selling your home to get the most — and keep — the most money.
Clever Real Estate can connect you with top-performing agents across Ohio who charge reduced rates — saving you up to 50% on commission fees.
Get in touch for a free, no-obligation consultation and learn more about how a Clever Partner Agent can save you thousands on commission on closing day.