Closing Costs in Nebraska: A Guide for Sellers
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Joseph Gordon EditorJoseph Gordon is an Editor with HomeLight. He has several years of experience reporting on the commercial real estate and insurance industries.
When you sell your home in Nebraska, it’s important to know what closing costs might affect your final payout. Closing costs are the various fees, taxes, and other expenses associated with completing a real estate transaction. While buyers typically handle some of these costs, sellers also need to account for certain fees.
In this guide, we’ll outline how closing costs work in Nebraska and provide a breakdown of what you may be expected to cover when selling your property. From realty transfer taxes to attorney fees, this overview will help you plan ahead, so you can maximize your earnings from the sale of your home.
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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?
Closing costs represent the various fees and expenses that arise when completing a home sale. These costs can encompass a variety of charges, such as property taxes and insurance, that most sellers encounter. However, certain fees, like transfer taxes, can differ based on the location of your home at the time of sale.
Mortgage/Loan payoff amount
Before selling your home, you’ll need to verify that your mortgage is fully paid off. This means covering the loan payoff amount, which is the remaining balance due on your mortgage. It includes any unpaid principal balance, as well as any accrued interest over the life of the loan.
In addition to the balance, the loan payoff amount may also incorporate fees tied to finalizing the mortgage terms, such as prepayment penalties or administrative charges. Clearing this amount is essential to proceed with the sale of your home.
Property taxes
According to WalletHub, Nebraska ranks 43rd in the country in terms of property taxes, placing it above states like Texas.
Real estate in Nebraska is taxed at a rate of 1.54%, with a median home value in the state of $205,600. To get a better idea of what you might owe, consult a property tax calculator.
Reconveyance fee
After the sale of your home is completed and your mortgage is paid off, you’ll typically need to cover a reconveyance fee. This fee is associated with receiving a reconveyance deed, which formally releases you from the remaining debt on your property. Your mortgage lender will record the deed with the local authorities, and the exact fee can vary depending on your location, including the city, state, or county where your property is 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.
In Nebraska, 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 Nebraska 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 Nebraska is $387.
Seller’s concessions
Sellers in Nebraska may find themselves covering costs at closing due to financing concessions negotiated during the sale. These concessions can include funds for closing costs, repairs, or even home warranties.
One common type of concession is repair credits. This comes into play when a buyer’s offer includes a contingency, often tied to the home inspection. If a seller declines to make the necessary repairs flagged by the home inspector, the buyer can back out of the deal while keeping their earnest money.
To avoid this, sellers may choose to offer repair credits—cash provided to the buyer at closing to cover the cost of the repairs. Keep in mind, however, that these concessions are less frequent in seller’s markets, as contingencies might deter prospective buyers.
Miscellaneous closing costs/fees
These are some of the most typical closing costs you’ll face as a seller in Nebraska. It’s worth noting, though, that many of these costs can be negotiated. Your buyer might be open to discussing some of these fees, and a real estate agent or attorney can often help you secure a more favorable arrangement.
If you’d rather skip the complexity of working with an agent or handling closing costs yourself, consider HomeLight’s Simple Sale program. This option makes selling your home straightforward with just three steps: provide some basic details about your property, consult with one of our Home Consultants, and sell your home in as little as 10 days.
Header Image Source: (Robert So/ Pexels)
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