Closing Costs are the topic of today's blog post! This is an extremely important topic, because lately I have been realizing that a lot of buyers (and some sellers) do not factor in closing costs when considering purchasing/selling a home. With these costs varying anywhere from $1000-$20,000, they are definitely something buyers should be educated on and aware of upfront. So what exactly are closing costs?
Closing costs are the fees and charges paid to finalize the purchase/sale of a home. Both sellers and buyers will incur closing costs during a transaction. So who is responsible for what?
This graphic just represents the most common closing costs incurred by the buyer/seller. Certain things (for example the survey and owner title policy) are negotiable terms and will sometimes be paid for by the buyer, while other times they are paid for by the seller. Some of the items not mentioned in this graphic, but are important to consider, are the pre-paid costs that are included in your final closing costs. These usually include insurance, taxes and interest.
So for example, lets say we have a $200,000 home purchase in Bryan/College Station. The buyer's closing costs would be around $8,400 and the seller's closing costs will be around $14,000. This is why finding out about the closing costs last minute, after you've already taken into account your down-payment, is sometimes a shock for some buyers and sellers. Always discuss upfront with your lender & agent what closing costs are estimated to be, so that you're prepared come closing day.
Interested in an estimate on what your closing costs will be? Call or text me anytime for a quote!
Thanks & Gig Em
Realtor, Certified Home Marketing Specialist
Sources: University Title Company app One Agent