Closing Costs for the Buyer and Seller

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Closing costs are the fees that are paid when the title of a property is transferred over to the buyer of a real estate transaction. Typically, the estimated closing cost can vary from 2-7% of the purchase price of the home. 

Typically, the buyer and the seller are in on the closing cost, however, the buyer takes a majority of the percentage (3-4%) and the seller usually contributes anywhere between 1-3%. If the seller is paying with cash, there still will be closing costs however they will be much less. 

The fees that buyers have to take on can vary. There may be fees for processing the loan paperwork, running of the buyer’s credit report, home inspection, a title search that could interrupt the new ownership, survey fees and stamp taxes on the money being borrowed.

For sellers, closing costs differ but can vary from the taxes on the sale of the home, attorney fees (if necessary), title transferring and a simple closing fee that is paid to the attorney’s office or title company when finalizing a purchase.

Closing costs have variables due to different state legal requirements. Check with your local realtor to discuss what will be expected and so you can be prepared with what is to come in buying or selling a home.