Closing costs for Buyer and Seller.

When it comes to selling or buying a property, closing costs play a significant role in the financial aspects of real estate.  Understanding closing costs is crucial. You may pay some or all of these closing costs when selling or buying a home. There are costs associated with the home itself such as inspections and insurance, while others costs come from third parties like lenders and settlement companies. Understanding these closing costs upfront allows a buyer or seller to plan their budget effectively, and avoid surprises. 

SELLER SIDE

• Real estate commission: An agent’s commission can be a significant seller cost.
• Transfer taxes: States require transfer taxes on a property’s sale. The taxes can be based on the sale price and vary depending on location.
• Attorney fees: Sellers need an attorney to handle the legal aspects of the transaction. 
• Prorated property taxes: Sellers may need to reimburse the buyer for the taxes that have been paid in advance.  
• Home repairs- seller may agree to make repairs, HOA-outstanding fees.
• Liens and Judgements -Sellers must resolve any liens or judgments on the property before closing. 
• Seller concession- money paid by the seller towards the purchase.

BUYER SIDE

• Loan origination fees: Lenders may charge loan origination fees to cover the cost of processing the loan application.
• Down payment- money you agree to pay to get the loan for a home.
• Appraisal fee, Survey fee. 
• Attorney fees: Buyers need an attorney to handle the legal aspects of the transaction. 
• Home / Pest /Roof / Pool inspection fee: Buyers hire an inspector to assess the property’s condition. The buyer pays for the cost of  inspection.
• Title search and insurance: The cost of a title search is the buyer’s responsibility to ensure the property’s title is clear. Buyers must also purchase a lender’s title insurance policy to protect the lender’s interest in the property.
• Home Warranty cost.
• Home Insurance cost.

Frequently asked Questions about closing costs.

1. Can you negotiate closing costs?

Yes, buyers and sellers can negotiate certain closing costs, including costs with lenders.

2. When do closing costs get paid?

Normally closing costs are paid at the closing of the transaction. Inspection fees are paid at the time of inspection.

3. Are there assistance programs that help with buyers costs?

States, counties and lenders, Non Profits offer financial assistance and grants for first time buyers.

4. How do I find out about my closing costs?

A realtor can prepare estimated outline of the cost for buying or selling your home.