Closing Costs in Nevada: 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.
Knowing the full scope of closing costs is essential when selling your Nevada. Closing costs are the fees and expenses associated with finalizing a real estate transaction, which sellers are responsible for paying at the sale’s conclusion. These costs can vary significantly, depending on your location and the specifics of your property sale.
Our guide will walk you through the key components of closing costs in Nevada, offering a clear picture of what to anticipate. Whether preparing to sell or simply exploring your options, knowing what these costs entail can help you budget and plan more effectively.
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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 refer to the various fees and expenses that arise when finalizing the sale or purchase of a property. These costs can include a broad range of charges, such as property taxes or insurance, which are typically required in most real estate transactions. However, certain fees, like transfer taxes, may vary depending on the location of your home.
Mortgage/Loan payoff amount
Before selling your home, one of the key financial obligations is settling the loan payoff amount on your mortgage. This amount represents the remaining balance due on your loan, which must be fully paid to close out the mortgage.
The loan payoff amount typically includes the outstanding principal balance as well as any interest that has accrued over the course of the loan. Additionally, there may be other associated fees, such as prepayment penalties or administrative charges, that must be covered to finalize the terms of the loan and proceed with the sale.
Property taxes
According to WalletHub, Nevada ranks 4th in the country in terms of property taxes, placing it above states like South Carolina.
To get a better idea of what you might owe, consult a property tax calculator.
Reconveyance fee
After you’ve successfully sold your home and paid off your mortgage, you’ll typically need to cover a reconveyance fee. This fee is associated with issuing a reconveyance deed, which officially releases you from your mortgage debt. The mortgage company is responsible for recording this deed, and the fee amount can vary depending on your location, including the specific city, state, or county where the transaction takes place.
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 Nevada, for example, transfer tax responsibility differs by location, but in Nevada, the buyer and the seller (or grantor and grantee) are equally responsible for the state’s Real Property Transfer Tax.
For all Nevada counties, real estate transfers are taxed at a rate of $1.95 for each $500 of value (or fraction thereof) if the value of the property changing hands exceeds $100.
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.
Real estate attorneys are not essential for closing in Nevada, but your real estate agent may suggest consulting one anyway.
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.
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.
The average monthly HOA fee in Nevada is $387.
Seller’s concessions
In Nevada, sellers might find themselves responsible for certain expenses at closing due to financing concessions agreed upon during negotiations. These concessions can cover costs such as closing expenses, repairs, or home warranties.
One common form of seller concession is repair credits. This approach is often utilized when a buyer’s offer includes a contingency related to a home inspection. If the seller declines to address the necessary repairs identified by the inspector, the buyer can typically withdraw from the deal while keeping their earnest money.
Sellers may offer repair credits instead of completing the repairs—essentially, cash provided at closing to cover the repair costs. However, concessions in a seller’s market are less frequent, as contingencies can deter potential buyers.
Miscellaneous closing costs/fees
These are some of the most common closing costs you’ll encounter as a seller in Nevada. However, keep in mind that many of these expenses are negotiable. Your buyer may be open to negotiating some of the closing costs, or a real estate attorney or agent can assist you in securing a better deal.
HomeLight can connect you with a top local agent to help minimize your closing costs without compromising your sale. Alternatively, if you’d like to bypass the complexities of working with an agent and managing closing costs, consider HomeLight’s Simple Sale program.
We streamline the home-selling process into just three steps: provide some basic details about your home, speak with one of our Home Consultants, and you could sell your home in as little as 10 days.
Header Image Source: (Rich Howard/ Pexels)
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