Closing costs are part of every real estate transaction. When you’re selling a duplex, triplex, fourplex or single-family home, you’ll be responsible for paying for some – or all – the closing costs associated with your transaction.
What Are Closing Costs in a Real Estate Transaction?
Closing costs are the fees associated with selling a property. Some costs are the buyer’s responsibility, while others are the seller’s. You may have to pay for:
- Real estate agent commissions
- Title search
- Title insurance
- Transfer taxes
- Recording fees
- Escrow fees
- Prorated HOA dues and document preparation fees
- Courier fees
- Wire fees
- Notary fees
- Natural hazard disclosure report
- Homeowners Insurance
- Pro-rated Property Taxes
- Outstanding amounts owed on your property
You may end up paying some of the buyer’s closing costs, as well – but that only happens if you agree. Sometimes sellers agree to pay a buyer’s closing costs in order to sweeten the deal. You might agree to pay for:
- Repairs, repainting and other upgrades
- Non-recurring closing costs (Non-recurring closing costs include title company expenses as well as fees associated with refinancing, such as credit reports, appraisals, and loan processing. They can also include real estate broker commissions, a home warranty premium, and property disclosure fees). These are one time fees, not something ongoing that can add up over time.
How Much Are these Costs?
Sellers can expect to pay between 6 and 10 percent of your duplex, triplex, fourplex or single-family home’s sales price in closing costs. That factors in the real estate agents’ commissions usually paid by the seller.
Buyers can expect to pay between 2% and 5% of their home’s purchase price, depending on loan discount points, transfer taxes and other factors.
Both buyer and seller are given an estimate of all closing costs at the start of a transaction from the title company, once in contract.
A qualified agent with years of experience in the real estate market can help you based on your particular market. When you’re ready to learn more, connect with me today. I’m happy to help!