Closing Costs in Maine: A Guide for Sellers
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Joseph Gordon EditorJoseph Gordon is an Editor with HomeLight. He has several years of experience reporting on the commercial real estate and insurance industries.
Selling your home in Maine? Knowing what to expect when it comes to closing costs can help you manage the process smoothly. Closing costs encompass various fees that sellers incur when finalizing the sale of a property.
These costs can include loan payoff amounts, property taxes, and other miscellaneous fees. Our concise guide will walk you through the specific closing costs you can expect to encounter in Maine, helping you prepare financially and avoid any surprises at the closing table.
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Disclaimer: This article provides estimates of a seller’s closing costs that are meant for educational and research purposes only; our calculations are not a guarantee.
What are closing costs?
Closing costs are any fees paid when finalizing the purchase or sale of your property. They can include any number of fees, like property taxes or title insurance; most are standard for homeowners and sellers. Others, like transfer taxes, will vary depending on where your home is located when it sells.
Mortgage/Loan payoff amount
When selling your home, you must settle your existing mortgage, which involves paying off the remaining balance. The loan payoff amount includes the principal balance and any accrued interest up to the sale date. This guarnatees that the lender releases the mortgage lien, allowing the sale to proceed smoothly.
A loan payoff amount is defined as the remaining balance due on a mortgage that must be paid, along with any additional fees that might be owed, in order to finalize the terms of the loan.
Property taxes
According to WalletHub, Maine ranks 36th in the country in terms of property taxes, placing it above states like Ohio.
Real estate in Maine is taxed at a rate of 1.17%, with a median home value in the state of $244,800. To get a better idea of what you might owe, consult a property tax calculator.
Reconveyance fee
Once you’ve finalized the sale of your home and your mortgage is paid off, you’ll usually be responsible for a reconveyance fee. You’ll receive a reconveyance deed, which releases you from your debt. Your mortgage company will have to record the deed, and the fee will depend on the city, state, or county where you are located.
Realty transfer tax
You also might be responsible for what’s known as a realty transfer tax. These are fees assessed by local governments whenever a property changes ownership.
These taxes are sometimes called a “Deed Excise tax” or a “Documentary Stamp tax.” Who ultimately pays these taxes depends on the state, city, or county where the sale occurs.
In Maine, both the buyer and the seller are responsible for paying the transfer tax, with each paying one-half of the total tax, levied at a rate of $2.20 for each $500 or fractional part of $500 of the value of the transferred property.
Real estate agent commission
Unless you’re selling your home for sale-by-owner, you’ll likely have used a local agent. Research indicates that an agent’s expertise can significantly impact your sale: In 2023, homes sold with an agent’s assistance had a median price of $405,000, compared to $310,000 for FSBO sellers.
Working with a real estate agent means paying a commission. This fee covers various services, such as accurately pricing your home, marketing it effectively, and negotiating with buyers to ensure you receive the best possible price and terms.
It should be noted, however, that on March 15, 2024, the National Association of Realtors (NAR) announced a landmark lawsuit settlement that will change the way real estate agent commissions are handled in the future. These changes will “decouple” seller and buyer agent compensation. Industry experts predict that this decoupling will likely lower agent fees and give buyers the ability to negotiate commission amounts directly. Learn more.
HomeLight’s transaction data reveals that the national average real estate agent commission is 5.8% of the property sales price. This commission typically includes fees for both the listing and buyer’s agents, with sellers customarily covering the cost.
Use HomeLight’s commission calculator by entering your city for commission data tailored to your specific area.
Attorney Fees
Some states require an attorney to be present when closing the sale of a property.
In Maine, closings are conducted by either a licensed attorney or a title company; however, according to Maine Law Title 9-A, §3-311, the consumer may select the attorney of their choosing.
Homeowners Association/Condo Fees
One of the biggest sticking points for sellers is the fees levied by their homeowners’ association (HOA) or condominium association fees. In Maine, the average monthly fee is $338.
Like other fees we’ve discussed, these will vary, not just because of the different rules and regulations of your local HOA but also because HOA regulations vary greatly depending on the state. These fees (or dues) are usually prorated at the time of the sale.
Seller’s concessions
Sellers might owe money at closing due to financing concessions agreed upon during negotiations. These concessions often include cash for closing costs, repairs, and home warranties.
A common seller concession is repair credits. This is sometimes used when a buyer has a contingency in their offer, usually related to home inspection. In that case, they can back out of the deal with earnest money intact if the seller refuses to address necessary repairs identified by the home inspector.
Instead of making the repairs themselves, sellers can offer repair credits—cash to cover the cost of needed repairs—to the buyer at closing. It’s important to note that these are less common in seller’s markets, usually because contingencies can be off-putting to potential buyers.
Miscellaneous closing costs/fees
These are some of the most common closing costs you’ll encounter as a seller in Maine. However, it’s important to remember that many closing costs are negotiable. Your buyer may be willing to negotiate on some of these closing costs, or a real estate attorney or agent may be able to help you get a better deal.
HomeLight can connect you with a top local agent to ensure you pay for the least closing costs possible without jeopardizing your sale. Or, if you prefer to avoid the hassle of dealing with an agent or managing closing costs, consider HomeLight’s Simple Sale program. We make selling your home easy in just three steps. Just enter some basic information about your home, speak with one of our Home Consultants, and you can sell your home in as little as 10 days.
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