When buying or selling a piece of real estate, there are a number of costs that are typically incurred in addition to the purchase price of the property. These costs, which are known as closing costs, can vary depending on a number of factors, including the location of the property, the type of property being purchased or sold, and the terms of the sale.
One of the most common types of closing costs is the commission that is paid to the real estate agents involved in the transaction. Typically, the buyer's agent and the seller's agent each receive a commission based on a percentage of the sale price of the property. This commission is usually split between the two agents, with the buyer's agent typically receiving a slightly larger percentage.
Another common type of closing cost is the title insurance premium. Title insurance protects the buyer against any potential issues with the title of the property, such as liens or encumbrances that may not have been disclosed at the time of the sale. The premium for title insurance is typically paid by the buyer and is based on the value of the property.
In addition to these costs, there are also a number of other fees and expenses that may be incurred during the closing process. These can include things like appraisals, inspections, and credit reports, as well as fees for the escrow company that is handling the transaction. Some of these costs may be paid by the buyer, while others may be paid by the seller.
There are also a number of taxes and other government fees that may be incurred during the closing process. These can include things like property taxes, transfer taxes, and recording fees. In some cases, these taxes and fees may be split between the buyer and the seller, while in other cases they may be paid entirely by one party or the other.
Overall, closing costs can add a significant amount to the overall cost of buying or selling a piece of real estate. It is important for buyers and sellers to understand what these costs are and how they are calculated, so that they can budget accordingly and avoid any surprises at the closing table. While the exact amount of closing costs will vary depending on a number of factors, they can typically be expected to add several thousand dollars to the overall cost of the transaction.
If you are closing with the best transactional funding available from Junegrass Lending, you can include these costs in your total fee, allowing you to close with no money down