Selling your home is a complex process no matter what
state you live in. When it comes to selling real estate in Rhode Island, you
must be aware of the general and state-specific costs you’ll have to pay when
closing a deal.
Sellers often forget that not all of the out-of-pocket
fees come from the buyer’s end, and it’s important to be prepared to face
certain costs upfront rather than being surprised by them later. This may seem
like an overwhelming task, but the more you learn beforehand, the easier it
will be when the time comes to officially sign off on your home.
Interested in putting your property on the market? Here’s what you need
to know about the closing costs when selling a house in Rhode Island.
RI Closing Costs: What to Expect
Below, we’ll list the major closing costs and fees
associated with selling your home in the state of Rhode Island. Many of these
fees and costs can (and likely will) be negotiated between you, the buyer, and
the real estate professionals helping you make the best deal.
It ultimately depends on the kind of market you are in. In
some cases, you may want to offer to pay a larger amount of the fees in order
to make your home more attractive to the buyer potentially purchasing your
home. But if it’s a “seller’s market,” you may be able to negotiate paying less
during the closing process.
Here are the major costs associated with selling your
Rhode Island home.
1. Attorney’s Closing Fee
Even if you are a DIY seller choosing to sell without the
help of a real estate agent, there still needs to be an attorney involved at
some point. This is because an attorney is the only person authorized to pass
on the title of the property to a new owner. In some cases, you must hire the
attorney, while in other cases, a title company can do it for you.
The attorney will charge their own fee for assisting in
the successful sale of your home. In Rhode Island, this fee can range anywhere
from $800 to more than $1,000.
2. Transfer of Deed Tax
The amount you must pay for your deed transfer tax
actually depends on which Rhode Island municipality the home is located in. You
may want to speak with some experts in your area so you can get a better idea
of how much you should put aside for this specific closing cost.
In some municipalities, there is a single flat fee for the
deed transfer tax. But other areas might charge in accordance with the home’s
selling price; for example, $10 for every $1,000 of the cost will be charged to
transfer the deed.
In RI, the standard transfer tax is $2.50 for every $500
of the home’s selling price.
View properties available in the area today. Start your search for your dream home or real estate property now. Or, use my Find Your New Home form and I'll conduct a personalized search for you.
3. Existing Money Owed: Liens, Mortgages, Loans, etc.
If you still owe money on your home, such as a mortgage,
you need to pay it off as a condition of selling. If you can’t pay all of this
off from the sale of your home, then special financing circumstances may be
Beware of doing things this way, as some mortgage
providers might actually charge an extra fee for paying it off early, or paying
it off late, while others have a fee for recording their service with you.
It’s important that you get ahead of the game by
contacting your mortgage company to find out what exactly the additional costs
4. General Closing Fees and Escrow Fees
Before the entire selling process can be completed, the
seller must pay a fee for the escrow process. Title companies (or escrow
companies if you are not going through title) are usually the ones responsible
for charging this fee, and they will hold onto your deed and all of the money
the buyer pays until you have covered this fee on your end.
There isn’t an exact number to put on this fee as it
varies widely by escrow company and it can also change depending on whether the
sale of the home is contingent upon something financial. However, you can rely
on the quote given to you by your escrow company, as the final costs are
typically very close.
Find out how much your home or real estate property is worth. Get Your FREE Home Market Analysis Report Right Now!
5. Property Taxes
It is the seller’s responsibility to cover any property
taxes you may still owe on the property. If you have any outstanding amounts,
you need to get that taken care of as quickly as possible. In most cases, you
must pay up to the day of closing, in which case you will be charged a prorated
6. Broker Commission
Your real estate broker will take a cut of the total
purchase price of the house, which on average is between 5% and 6% in Rhode
Island. Keep in mind that you do have options when it comes to selling your
home, and you are not required to go through a broker, or an agent. If you are
looking to cut down costs, you can try to sell your home directly through the
MLS. However, working with a broker/agent can often help you navigate details
that could cost you thousands of dollars, making the experience go a lot more
7. Additional Fees and Loans
Aside from the major closing costs and fees associated
with selling your house, there are a few smaller fees that you must consider.
Some of these fees may not be required, but should still be considered. Keep a
lookout for the following:
You can choose to use a courier to deliver all of your
loan payoffs or other documents while you sell your home. In this case, the
courier typically charges between $25 and $100 depending on how many deliveries
You only need to worry about this if the home you’re
selling is part of an HOA. Estoppel letters include the homeowners’
association’s account of the state of your home and whether you owe anything to
In Rhode Island, there is a state-specific law that
requires sellers to put smoke detectors in the home. RI General Law 44-30-71.3
states that you must purchase a certificate for $30 which proves that you have
successfully installed these in the home.
If you have any overdue utility bills, you need to pay
them all the way up to the date of sale.
Find out how much your home or real estate property is worth. I will provide you with sales prices of other similar properties in your area.
Going through the process of selling your home in Rhode
Island requires a certain amount of closing costs and fees depending on the
complexity of your sale. Some costs are required both by the state of Rhode
Island and by the companies you are working with, such as your mortgage
company, while other costs are varied and negotiable, such as a broker’s fee
and courier payments.
It’s important to go with an expert that you can trust to
guide you through the process so you don’t have any surprises waiting for you
at the end.