The Costs to Sell a Home in Massachusetts

Massachusetts Tax Stamps. If you have never sold a Massachusetts home before you may also not realize there are a variety of costs involved, including a state tax. This tax is known as the Massachusetts tax stamps. In most areas of Massachusetts the tax stamp equals $4.56 per thousand dollars of the sales price of the home, for example, if you sell your home for $500,000, you would owe the State of Massachusetts $2,280 ($4.56 x 500). The money paid for the tax stamps is income given to the appropriate registry and is forwarded on to the Commonwealth of Massachusetts Department of Revenue. The tax rate for Barnstable County is $5.70 per thousand, slightly higher. The Dukes and Nantucket Counties also charge an additional 2% of the sales price that gets paid to the local land bank commission.

Attorneys Fees. I always advise my sellers and buyers to obtain legal representation. The expense of having a good lawyer representing your interests is cheap in comparison to dealing with the cost of problems. A Real Estate attorney can do everything from the review of legal contracts, such as, the offer, the Massachusetts purchase and sale agreement, attend the closing either with you or as power of attorney for you. Depending on the work the Attorney is completing for you, the costs could range from $300-$1,500. This should be discussed with your attorney.

Massachusetts Title V. The Massachusetts Title V is an expense every seller in Massachusetts has to pay if their property is not serviced by public sewer. It is a state law that a Title V must be completed upon the transfer of Real Estate. You can expect to pay approximately $800 for a Title V inspection. The cost could become higher if the septic tank or distribution box is in an area that is hard to dig up. This septic expense would also include the pumping fee. Most of the time the septic system will get pumped at the time of the Title V inspection. The Title V septic inspection is good for two years. The septic certification can also be extended a third year if you pump the system in all three years.

Smoke Detector and carbon monoxide detector certification. In Massachusetts, you must have your smoke and carbon monoxide detectors inspected prior to closing. The inspections are done by the local fire department in the town you are located in. The charge for inspecting the smoke and carbon monoxide detectors is generally around $35-$100. You should contact your local fire department prevention unit for more information.

 Preparing a new deed. In Massachusetts it is the sellers responsibility to have a new deed prepared that gets recorded at the registry. The preparation of a new deed is usually $100-$200 and is done by the attorney representing you or possibly the banks lawyer if you do not have legal representation.

There will also be some small miscellaneous costs for mailing, filing fees, etc that will be added to your HUD settlement statement at the closing. These fees include overnight mailing, courier services, wiring expenses, charges for processing mortgage discharges and recording fees for recording various documents at the Registry of Deeds.  The total of these miscellaneous expenses will usually amount to a few hundred dollars.