If you’re selling your home in New Hampshire, understanding closing costs is essential. Closing costs refer to the fees and expenses of finalizing a property sale. These costs include anything from loan payoff amounts and property taxes to real estate agent commissions and HOA fees. Knowing what to expect can help you budget and avoid surprises.
In this guide, we’ll discuss the various closing costs you might encounter when selling your property in New Hampshire. From realty transfer taxes to attorney fees, we’ll explain each cost and provide tips on managing these expenses effectively. By the end, you’ll have a clear picture of what to anticipate, ensuring a smoother transaction as you sell your home.
Need to Sell Your House Fast in New Hampshire?
Get an all-cash, no-obligation offer through HomeLight’s Simple Sale platform whenever you’re ready. Receive your offer in as little as 24 hours and close in as few as 10 days. No showings, no repairs, no open houses. Available to sellers throughout New Hampshire.
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 various fees, like property taxes or 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 pay off your remaining mortgage balance. The loan payoff amount includes the principal balance left on your mortgage and any accrued interest up to the payoff date. This total amount ensures that your mortgage is fully settled, allowing the sale to proceed smoothly.
Property taxes
According to WalletHub, New Hampshire ranks 48th in the country in terms of property taxes, placing it above states like Chicago.
Real estate in New Hampshire is taxed at a rate of 1.89%, with a median home value of $337,100. 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.
The responsibility for paying transfer taxes can vary, but in New Hampshire, it is the responsibility of both the buyer and the seller. Typically, each party covers half of the total transfer tax amount, but this can change based on the terms of the transaction agreement.
In New Hampshire, transfer taxes are levied at a rate of $0.75 per $100 of the total price or consideration of the property changing hands. If the property in question is sold for less than $4,000, a minimum tax of $20 is levied on both the buyer and the seller.
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. New Hampshire is one such state and requires a licensed attorney to conduct real estate closings.
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 cost of monthly HOA fees in New Hampshire is $387.
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 New Hampshire. 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 basic information about your home, speak with one of our Home Consultants, and you can sell your home in as little as 10 days.
Header Image Source: (robertcrum/Depositphotos)
English (US) · 