What are closing costs for a Buyer and Seller of Real Estate?
- Agent Commissions (paid by seller)
- Escrow Fees (paid by both parties)*
- Title Fees (paid by both parties)*
- Lender Origination Fees (paid by the buyer)*
*Never forget, everything is "negotiable" in real estate.
When you are teamed up with a Savvy Realtor, they will be able to help you get "closing costs" that are typically going to be your fee, covered by other parties in the transaction.
Here is how it "basically" works.
Real Estate Buyers
Your closing costs will be the amount it costs you to get a Loan. Your part of Title Insurance and your part of the escrow costs.
Three things - Each thing amounting to a typical 1%, aka 1 point. That makes a total of 3% of the sales price of the home, condo or townhome.
They are "not set in stone" at 3%, but that is a good starting point. In some cases they are less and in some they are more. It depends on the parties involved and the structure of the terms related to the accepted offer.
In some cases, we can get the seller to pay a buyer's closing costs!
In other cases, we are able to get the real estate sellers to allow for the buyer to finance their closing costs as part of their loan.
Sometimes, buyers pay their own closing costs.
In some cases, we are able to get the buyer's real estate lender to assist.
Real Estate Sellers
Your closing costs consist of the commissions to both of the real estate agents. Part goes to the agent you hired to sell your home, condo or townhome. The other part goes to the real estate agent bringing and representing the buyer of the residential real estate you are having your agent sell for you.
That amount? It could be 3% per side - 3% going to the Listing Agent and 3% going to the Selling Agent. That number, as previously stated, is also negotiable. The seller will negotiate this fee when interviewing the agents to list their property.
resource: what is your home worth right now?
The seller has to also pay their part of Escrow and their part of Title. (approximately 1% each)
In some cases, sellers are also paying for a buyer's closing costs. This would have been negotiated upfront within the offering and countering offering process.
Please make sure you are working with a Savvy Realtor so you are able to get the best deals when it comes to closing costs. Remember, the Value is a much more important part of commissions to be paid than Cost.
resource: who are we and what do we have to offer?
You pay Cost only once - but you pay for Value much longer... (something dad used to say...) OMT - he also used to say he was too poor to buy cheap things...