Do you know what is included in closing costs and who is responsible for paying them? Today I want to address these questions to give you answers.
The first thing that you need to know is that closing costs are completely negotiable between the buyer and seller. If you have ever been a seller in a real estate transaction, there is a very good chance you have been asked to contribute to the buyer’s closing costs. If you have been a buyer before, there is a good chance that you have contributed some money to a closing transaction by wiring money to the attorney. Sometimes, buyers are fortunate enough to get some money back at the closing table, although this does not always happen.
Some of the charges that make up your closing costs include loan origination fees, attorney fees, title fees, and upfront payments due to an escrow account if there are any. Lots of things make up closing costs.
If you are a seller, splitting the costs of these fees helps your buyer finalize their purchase. Oftentimes, the buyer has saved up enough money for the down payment to qualify for the loan and financing and might not have a ton of money left over for closing costs.
Real estate commissions are also important to be aware of if you use a Realtor. Most likely, a seller will be asked to purchase a home warranty for the buyer as well. There are different price ranges for these home warranties. Another thing we commonly see is asking the seller to purchase a one-year termite bond after closing.
If you have any additional questions about closing costs or are interested in buying or selling a home any time in the near future, please feel free to reach out by phone or email. I look forward to speaking with you soon.