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
Approach to appraise rental property based on anticipated future earnings to be derived from it plus the estimated selling price at the end of he period held. ...
Street terminating at one end with only one outlet. A dead end street is not a through street. See also cul de sac. ...
The definition of a master planned community in real estate is a community planned from the ground up with the purpose of being as convenient, aesthetically appealing and luxurious as ...
Assures that the title is free of any legal claims including encumbrances. It includes covenants of seizin, freedom from encumbrance, express warranties of title, right to quiet enjoyment, ...
Structure have two dwelling units under the same roof. Two-story apartment unit. ...
A simple box-shaped house with clapboard siding and a gable roof. ...
Giving additional time to conduct some act. An example is a landlord granting a tenant an additional week to make the rental payment. ...
Some states make the legal assumption, based on title theory, that the mortgagee is a partial owner of the real estate securing the mortgage and remains as is until the debt is fully paid. ...
Section of the Internal Revenue Code applies to assets used in a trade or business,. In general, gains on section 1231 assets are taxed at capital gains rates, and losses are considered ...
Have a question or comment?
We're here to help.