At the end of the real estate transaction come the closing costs. For seller costs, this can come to a significant amount of money on the closing date. However, the more you know about how closing costs are calculated, the better prepared you'll be for completing your home sale. Here are the most important things to know:
Closing costs for sellers vary based on multiple factors. Luckily, there are plenty of online calculators and other tools available for estimating your total closing costs. You'll need to combine property taxes, closing fees, title insurance fees, escrow fees and attorney fees with commissions paid to real estate agents.
Sometimes a seller can offer to cover the whole closing costs for the purchaser. This can help you win over a potential buyer in a competitive marketplace. A purchaser can ask for concessions in exchange for completing negotiations.
In some cases, buyers may ask for an offer to cover an issue found in a home inspection. Talk to your sales agent to find out if there's an alternative option to match your goals.
Closing costs will vary from one sale to the next, but sellers can typically expect to pay around 8% to 10% of the home's total sale price. The largest part of this percentage comes from real estate agent commissions, which can be as high as 6% of the purchase price. Other cost variables include local tax rates, homeowners association fees, legal fees and title insurance fees.
Your total seller closing costs will be due when you sign your final loan documents on the closing day. Make sure to have everything prepared to complete the transaction, as delays in closing can end up costing you more.
Once the seller pays closing costs and all the paperwork is signed, the sale is considered completed. Keep these basics for how and why sellers pay closing costs, and you'll be better prepared for every step of the process.
As a Real Estate Professional my number one goal is to provide exceptional service that leaves my clients happily satisfied. I do this with my commitment to helping you buy or sell your home with the highest level of expertise in your local market. This also means helping you understand each step of the buying or selling process. I do not sell houses, I simply guide my clients through a predetermined series of events to ensure a smooth stress free Real Estate experience. You can count on me to always do what's in your best interest, as I pride myself on being honest, trustworthy, and knowledgeable in the Real Estate market. I understand how important it is to get the best offer for your property, therefore I make it my responsibility to help you achieve these goals. Whether you are buying or selling your primary residence, a second home, investor property, a first time buyer, or just relocating to a new neighborhood, I can help make your home-ownership dreams come true. (First Time Buyer Specialist) (Certified Probate & Trust Specialist)
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