Closing Costs in West Virginia: A Guide for Sellers

Reconveyance fee

After the sale of your home is completed and your mortgage is fully paid off, you’ll typically be responsible for a reconveyance fee. This fee covers the issuance of a reconveyance deed, which formally releases you from your mortgage debt. Your lender is responsible for recording the deed with the local authorities, and the cost of this fee can vary depending on the regulations in your specific city, state, or county.

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 West Virginia, for example, the seller is typically responsible for covering transfer taxes as part of the closing costs, but this can fall to the buyer, depending on the terms of the sales agreement. The tax is $1.10 per $1,000 of the property’s sale amount.

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.

The West Virginia State Bar Committee Opinion No. 2003-01 requires that a licensed real estate attorney examine and certify the title and conduct closing.

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 West Virginia is $392.

Seller’s concessions

Sellers may find themselves owing money at closing due to financing concessions that were agreed upon during negotiations. These concessions often come in the form of cash to cover closing costs, repairs, or home warranties.

One common type of seller concession is repair credits. This option is often used when a buyer includes a contingency in their offer, typically related to a home inspection. If the seller chooses not to address the necessary repairs identified during the inspection, the buyer may retain their earnest money and walk away from the deal.

To avoid this, sellers sometimes offer repair credits, which provide the buyer with funds at closing to cover the cost of the repairs. However, these concessions are less common in competitive seller’s markets, as contingencies can sometimes deter potential buyers.

Miscellaneous closing costs/fees

These are some of the typical closing costs you may encounter as a seller in West Virginia. However, it’s important to note that many of these costs are negotiable. Your buyer may be open to discussing these fees, or a real estate attorney or agent could help you secure a more favorable deal.

If you want to ensure you’re paying the lowest possible closing costs without risking your sale, HomeLight can connect you with a top local agent. Alternatively, if you’d prefer to skip the complexities of working with an agent and managing closing costs, consider HomeLight’s Simple Sale program.

It simplifies the selling process into just three easy steps: provide some basic details about your home, consult with one of our Home Consultants, and you could sell your home in as little as 10 days.

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