Maryland has the highest costs related to real estate sales out of any of the states in the US.  They are not only higher than elsewhere, they are a long way higher. This could put buyers off, especially considering the current tough economic conditions. It can be hard enough saving for a decent deposit let alone paying the state and county transfer fees. Buyers of course can negotiate to share these costs with the seller, but should the seller come to the party, and by how much?

The average listed price for homes in Baltimore is around the $190,000 mark. At present, buyers and sellers can negotiate a seller contribution of up to 6% of the sales price – that equates to around $11,400 for that $190,000 home. In Baltimore City, recordation fees are $10 per 1000 or in this case $1,900. You can halve that for Baltimore county.  Transfer taxes at 2% add another $3,800 to the bill for a total cost of $5,700in Baltimore City .

For sellers then, is it worth negotiating some or all of those costs to secure a sale? Given it’s a buyers market, you may have to. You also need to remember there are legal, appraisal and lender fees that have to be added to that total. If the buyer intends making it their primary residence then you can also factor in a $300-$400 reduction in those taxes.

At the present, it’s all about good faith. Negotiating some of those fees may makes it easier for the buyer to complete the sale, especially if they have come into the buying market with small cash reserves. As a real estate seller in Maryland, you can certainly expect to see a request to share some of these costs.

Related posts:

  1. Home Buying Tip – Negotiating Shared Settlement Costs
  2. Title Transfer Costs – Be Aware Of Costs Before Buying
  3. Short Sales Can Have A Real Sting In The Tail For Home Buyers
  4. Real Estate – Know Your Financial Limitations Before Negotiating A Sale Price
  5. Real Estate Sales – Setting A No Regrets Price