What Every Homebuyer Should Know About Closing Costs

If you’re looking to buy a home, it’s important to thoroughly understand all the costs involved! A down payment isn’t the only thing you need to save for; you should also be prepared to pay any closing costs.

Not sure what those costs might be? Read on to learn about closing costs and how you should budget. We’ll also touch on closing costs as a seller, and how to avoid them.

What are closing costs?

As Bankrate explains, “Closing costs are the fees and expenses you must pay before becoming the legal owner of a house, condo or townhome.” Basically, closing costs include any additional payments you have to make at closing.

Closing costs vary based on the specific home, financing, and situation. According to Freddie Mac, closing costs typically include:

  • Government recording costs
  • Appraisal fees
  • Credit report fees
  • Lender origination fees
  • Title services
  • Tax service fees
  • Survey fees
  • Attorney fees
  • Underwriting fees

How much are closing costs?

Freddie Mac says that closing costs are usually between 2% to 5% of the total purchase price of the home. So, if you wanted to buy a home around the current median home price of $384,500, you could expect to pay between $7,690 and $19,225 in closing costs.

Obviously, this is a huge range! That’s why it’s so important to research which closing costs might apply to you based on your location and other factors. As Freddie Mac advises: “As you start your homebuying journey, take the time to get a sense of all costs involved—from your down payment to closing costs.”

What about closing costs as a seller?

Homebuyers typically pay most of the closing costs, but sellers aren’t totally off the hook. In some locations, sellers may have to pay state and county transfer tax or split an attorney fee. In some situations, sellers also agree to cover some closing costs as part of the bargaining process.

If you’re worried about losing money as a seller, whether it’s to closing costs or to repairs, you may wonder if there’s another way:

“Can I sell my house fast without paying closing costs?”

“Can I sell my house fast without paying commission?”

“Can I sell my house fast without making repairs?”

The answer to all of these questions is YES! As a seller, you can avoid all closing costs, commission, and repairs by selling your house to a cash buyer like MarketPro Homebuyers. This is a great way to maximize your profit, especially if your home is distressed.

Work with MarketPro:

We’ll give you a fast cash offer for your current home just as it is now; no repairs, no upgrades, no inspection, no commissions or fees. You can even choose your exact closing date. Our team will walk you through your quote, including a review of what your home would likely bring on the open market.

If you’re in Washington, D.C., Maryland, Virginia, Pennsylvania, Florida or Georgia, we’d love to show you how easy and stress-free the sales process can be. Contact us today for a same-day, no-pressure quote.

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