Closing Costs
- What are the closing costs?
Closing costs are the fees and expenses paid during Closing. They are not included in the final purchase price of the property.
- How much are the closing costs?
Normally, the closing fees are somewhere between 2 to 5 percent of the final purchase price of the property.
- What is included in the closing costs?
That varies from state to state, the type of property in question and the type of loan the bank gave to the home buyer. But here is a list of expenses typically included:
Application fee
Appraisal
Credit report
Escrow fee
Home Owner Association’s Transfer Fee
Private Mortgage Insurance (PMI)
And many more…
- Who pays the closing costs?
Typically the home buyer, but you can try to negotiate with the Home Seller. Some Home Sellers do accept to share or even assume this burden, most of the times deducting it from the final purchase price of the property. That's why Understanding the Housing Market on your Own is important. If you're in a Buyer's Market, a Home Seller will likely cede in order to sell his house once and for all.
Real Estate tips:
Take a look at our Glossary to find other terms and kick your real estate vocabulary up to a new level!
Also search through The Official Real Estate Agent Directory® to find a trustworthy agent to help you in all stages of a home sale.
Popular Real Estate Terms
The person to receive the benefits of a trust when distribution occurs. Secondary beneficiaries may be nominated if the primary beneficiary predeceased the trust distribution. The ...
Process of conferring and consulting with clients concerning real estate investments and developmental projects. See also American Society of Real Estate Counselors (ASREC). ...
Simulation that enables investors to determine variations in the rate of return on an investment property in accordance with changes in a critical factor. It is an experiment with decision ...
Abusive tax shelters are a consequence that resulted from Congress allowing losses of revenue to be used for tax benefits. They are a side-effect of tax deductions that companies are ...
Optional feature included in some homeowners insurance policies that pays the replacement cost of any personal property. ...
A knowledgeable person authorized to aid in the underwriting of property and casualty insurance. ...
The vertical elements of a door or window frame which provide vertical support to the overall frame. ...
The definition of Fair Market Value in the real estate business is the highest amount that could be received on the sale of a property when there are a willing buyer and a willing seller. ...
The number of units currently occupied in a facility, neighborhood, or city, stated as a percentage of total capacity. For example, a hotel has 80 rooms available for guests. Its average ...
Have a question or comment?
We're here to help.