You’ve likely heard about closing costs, but do you know everything that they include? Check out our closing cost “FAQ” to learn more about what closing costs are all about.
What Are Closing Costs Exactly in Mt. Laurel?
Closing costs refer to all of the fees that must be paid at the closing table. Depending on where you live, the fees and costs can vary. But generally, closing costs include, but are not limited to:
- Notary fees
- Transfer Costs
- Transfer Taxes
- Appraisal Costs
- Inspection Fees
- Origination Fees
- Recordings Fees
- Title Insurance
- Underwriting Fees
- Bank Fees
- Courier Fees
- Wire Transfer Fees
- Liens against the home will need to be paid to clear the title
- Credit Report Fees
- Administrative Fees
- Attorney Fees, If Applicable
- The balance of your mortgage or loans against the home
- Possibly repairs or pest control if this has previously been agreed upon
- COMMISSIONS!
- CLOSING COSTS: EXACTLY WHAT ARE THEY IN MT. LAUREL:
Closing costs when selling a house refer to the various fees and expenses associated with transferring ownership of the property from the seller to the buyer. These costs can vary depending on factors such as location, the terms of the sale agreement, and negotiations between the buyer and seller. Here are some common closing costs sellers may encounter:
- Real Estate Agent Commissions: $$$$$Typically the largest expense, sellers usually pay a commission to both their own agent (the listing agent) and the buyer’s agent. This is typically a percentage of the final sale price, though the exact percentage can vary.
- Title Insurance: Sellers often pay for the title insurance policy, which protects the buyer and lender against any disputes over ownership of the property.
- Property Taxes: Sellers are responsible for paying property taxes up to the closing date. This may involve prorating the taxes based on the time the seller owned the property during the tax period.
- Transfer Taxes: Some states or local jurisdictions impose transfer taxes or stamp duties on real estate transactions, which are typically paid by the seller.
- Attorney or Closing Agent Fees:$$$$ Sellers may hire an attorney or closing agent to oversee the closing process, handle paperwork, and ensure that all legal requirements are met.
- Outstanding Liens or Judgments: Any outstanding liens or judgments against the property must be paid off before the sale can be completed. This could include mortgage balances, home equity loans, or unpaid property taxes.
- Home Warranty: In some cases, sellers may choose to offer a home warranty to the buyer, which covers certain repairs or replacements for mechanical systems or appliances in the home. The seller typically pays for this warranty.
- Repairs and Pre-sale Improvements: Sellers may incur costs for repairing or improving the property before putting it on the market, such as repairs required by the buyer’s inspection report or cosmetic upgrades to increase the home’s appeal.
- Recording Fees: The cost of recording the sale with the appropriate government office may be the responsibility of the seller.
It’s essential for sellers to be aware of these potential costs and to factor them into their budget when planning to sell a property. If you do not want all the hassle that comes with selling your house, contact ED BUYS HOUSES, 856-252-0777. We can answer your questions and help you through this process. NO HASSLE- simple and easy.
CLOSING COSTS: EXACTLY WHAT ARE THEY IN MT. LAUREL:
Who’s Paying?
While the buyer will usually pick up a number of theses, it is important to note, that the seller typically pays 100% of the commission. This will be about 6%+ of the final sale price. Other than your possible mortgage balance, this is by far the biggest cost when it comes to costs at the closing table. Negotiating the other costs during the sale process is becoming increasingly popular. In an effort to lure in more buyers, sellers are more frequently picking up the tab when it comes to the closing costs.
As a seller, you will also need to pay your share of the year’s property tax, up until the day of closing. Any HOA fees or other community costs should be prorated and paid at this time as well.
What Are Seller Subsidies?
This is an amount negotiated between the buyer and seller. It is the percentage the seller agrees to pay towards the closing costs. For example, you can offer to put 3k towards closing to help relieve some of the costs for your buyer. Overall, paying these subsidies are often a small price to pay to bring buyers to the table!
CLOSING COSTS: EXACTLY WHAY ARE THEY IN MT. LAUREL:
Can You Avoid These Costs?
Yes! By working with a direct buyer who will pick up all costs associated with the closing! A direct buyer will not charge you a commission, as they are not an agent. Many times, direct buyers will offer to pick up all costs, which will save you money and hassle at the closing table.
Are Repairs Included?
This is another one that is negotiated between the buyer and the seller. If the home is in need of some obvious repairs, the seller will often take care of these before putting their home on the market. However, if an inspection shows additional repairs are needed, a buyer may make his offer contingent on repairs being made. A buyer and seller can work this out before going to closing.
CLOSING COSTS: EXACTLY WHAT ARE THEY IN MT. LAUREL: