Are you curious how much it will cost to sell your home in Wisconsin? You’ll need to factor closing costs into your potential profit. Closing costs are the various fees and expenses that you, as a seller, need to account for when finalizing your home sale.
These can range from the loan payoff amount to real estate agent commissions. In Wisconsin, these costs are typically paid out of your sale proceeds, and they can affect how much you take home after selling your property. In this guide, we’ll walk you through the specific closing costs you’ll likely face in Wisconsin and what you can expect to pay.
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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?
When selling your home, closing costs refer to the fees and expenses paid to complete the sale. These costs cover a range of services, such as property taxes and insurance, and are generally standard for most transactions. However, certain fees, like transfer taxes, can differ depending on the specific regulations of your home area.
Mortgage/Loan payoff amount
Before selling your home, you’ll need to settle your existing mortgage, which is done by paying the loan payoff amount. This amount includes the remaining principal balance on your mortgage and any interest that has accumulated since your last payment. Depending on your mortgage’s terms, additional fees could also be involved.
The loan payoff amount must be fully satisfied before you can finalize the sale of your home.
Property taxes
According to WalletHub, Wisconsin ranks 44th in the country in terms of property taxes, placing it above states like Texas and New York.
Real estate in Wisconsin is taxed at a rate of 1.51% , with a median home value in the state of $327,500. 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 your mortgage is fully paid off, you will typically be required to cover a reconveyance fee. This fee is associated with receiving a reconveyance deed, a document that officially releases you from the debt tied to your mortgage.
Your lender will record the deed with the local authorities, and the cost of this fee can vary depending on your city, county, or state. Knowing about this fee in advance can help you plan for any final expenses as you close the chapter on your mortgage.
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 Wisconsin, for example, the seller is typically responsible for covering transfer taxes as part of the closing costs.
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 Wisconsin but may be advised by your real estate agent.
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 Wisconsin is $277.
Seller’s concessions
In Wisconsin, sellers may be responsible for covering certain costs at closing due to financing concessions agreed upon during negotiations. These concessions can include funds for closing costs, repairs, or even home warranties. One of the more common concessions is repair credits, which are often utilized when a buyer includes a home inspection contingency in their offer.
If the inspection reveals necessary repairs, and the seller prefers not to handle them personally, they can offer repair credits at closing to cover the estimated costs. While these concessions can help keep the deal on track, they are less frequent in a seller’s market, where buyers might be more hesitant to include contingencies that could discourage competitive offers.
Miscellaneous closing costs/fees
These are some of the most common closing costs you’ll face as a seller in Wisconsin. However, keep in mind that many of these costs are negotiable. Your buyer might be open to discussing who covers which fees, and a real estate agent or attorney can help you secure the best possible deal.
If you’d like to avoid the complexity of managing closing costs or navigating agent negotiations, you might want to consider HomeLight’s Simple Sale program. It simplifies the process into three easy steps—enter your home’s basic information, speak with one of our Home Consultants, and you could sell your home in as little as 10 days.
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