Closing costs are the fees paid between the seller and the buyer at the conclusion of the home buying process. Closing costs generally are paid to third parties for services they have provided to facilitate the sale and legal ownership transfer of the property. These costs usually range from 2% to 5% of the overall sales. According to Zillow.com, these expenses can include:
Appraisal fee
Origination fee
Prepaid interest
Prepaid insurance
Flood certification fee
Tax servicing free
Credit report fee
Bank processing fee
Recording fee
Notary fee
Title insurance
If the buyers’ have to pay all of these fees, then what is left for the seller? The Real Estate Commission. This is usually the largest fee since it is a percentage of the overall sale price. Even though sellers do not pay as many fees, the price of this fee usually costs more than all of the buyers fees.
It is important to note that with some research and the right negotiating skills, closing costs can be significantly cut for the buyer. Sometimes sellers will just throw in a percent they will cover in closing costs to make it seem like they are doing you a favor, but do not be satisfied. Know the situation and try to negotiate the best deal possible for yourself!
Those who have served in the military can receive many deductions on their closing costs! Do not forget to take advantage of this awesome perk. Those who serve are not the only ones who can save. Make sure you know what kind of benefits you may qualify for, it can save you a lot of money!
If you have any questions about acquiring your dream home, contact us today!