Why should a seller find out his closing costs before signing a contract?

A: A seller should know all his closing costs before entering in to a contract.  The amount due to payoff his mortgage, realtor commissions and transfer taxes can be calculated easily.  Other closing fees including recording fees, title company charges, final tax and water bills should be calculated prior to contract signing.  Another significant item is potential capital gains tax on a seller’s profit which can greatly reduce the amount a seller ends up receiving.