Closing Costs
Buyers and sellers can have huge variances in closing costs. Moreover, there are many factors that are attributed to this value.
The costs for the buyer will be 2-5% of the purchase price. In general, a buyer can be expected to incur the following:
- Loan origination fee
- Discount points (if applicable)
- Processing
- Underwriting
- Wire transfer
- Credit check
- Title insurance
- Escrow
- Appraisal
- Home inspection
However, the buyer’s costs will be significantly lower if the buyer is not financing the purchase of the property. Buyers may choose to eliminate some of these expenses. But first, consult a real estate attorney.
Conversely, the sellers will be expected to pay the following items:
- Association fees
- Property taxes
- Attorney fees
- Transfer taxes
- Title insurance
- Escrow fee
- Real estate commission
The total seller’s costs will be 8-10% of purchase price of the property. Furthermore, it is very common for the seller’s closing costs to be higher than the buyer’s costs. Remember, the seller typically pays the real estate agent’s commission for the buyer and the homeowner.
Additional charges may occur if the buyer or seller elects to do a remote closing, requiring mailing expenses.
