What are closing costs when buying and selling real estate

    What are closing costs for a Buyer and Seller of Real Estate?

    Closing costs, when buying or selling real estate, include things like:real estate closing costs, selling homes, realtors

    • Agent Commissions (paid by seller)
    • Escrow Fees (paid by both parties)*
    • Title Fees (paid by both parties)*
    • Lender Origination Fees (paid by the buyer)*

    *Never forget, everything is “negotiable” in real estate.

    When you are teamed up with a Savvy Realtor, they will be able to help you get “closing costs” that are typically going to be your fee, covered by other parties in the transaction.

    Here is how it “basically” works.

    Read: Don’t make these mistakes in Real Estate!

    Real Estate Buyers

    Your closing costs will be the amount it costs you to get a Loan. Your part of Title Insurance and your part of the escrow costs.

    Three things – Each thing amounting to a typical 1%, aka 1 point. That makes a total of 3% of the sales price of the home, condo or townhome.

    They are “not set in stone” at 3%, but that is a good starting point. In some cases they are less and in some they are more. It depends on the parties involved and the structure of the terms related to the accepted offer.

    In some cases, we can get the seller to pay a buyer’s closing costs!

    resource: why should you be worried about zillow and trulia when searching for homes

    In other cases, we are able to get the real estate sellers to allow for the buyer to finance their closing costs as part of their loan.

    Sometimes, buyers pay their own closing costs.

    In some cases, we are able to get the buyer’s real estate lender to assist.

    Real Estate Sellers

    Your closing costs consist of the commissions to both of the real estate agents. Part goes to the agent you hired to sell your home, condo or townhome. The other part goes to the real estate agent bringing and representing the buyer of the residential real estate you are having your agent sell for you.

    That amount?  It could be 3% per side – 3% going to the Listing Agent and 3% going to the Selling Agent. That number, as previously stated, is also negotiable.  The seller will negotiate this fee when interviewing the agents to list their property.

    resource: what is your home worth right now?

    The seller has to also pay their part of Escrow and their part of Title. (approximately 1% each)

    In some cases, sellers are also paying for a buyer’s closing costs.  This would have been negotiated upfront within the offering and countering offering process.

    Hire smart…

    Please make sure you are working with a Savvy Realtor so you are able to get the best deals when it comes to closing costs. Remember, the Value is a much more important part of commissions to be paid than Cost.

    resource:  who are we and what do we have to offer?

    You pay Cost only once – but you pay for Value much longer… (something dad used to say…) OMT – he also used to say he was too poor to buy cheap things…

     

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    Paris and Connor MacIvor

    Connor and Paris MacIvor are in the Top 1% of Realtors Nationwide, starting their real estate business in 1998 with RE/MAX Gateway - Santa Clarita Valley and Valencia CA. Their becoming licensed real estate consultants and representatives came from the horrible experience they had when they bought their first home. There were many things that the agent they had hired did not explain and disclose, which per law he should have. Getting that agent on the phone after they closed escrow and after he had gotten paid was impossible. Paris and Connor called the broker, the board of realtors, the office manager and all they received was the promise of a phone call back. The remedy did come, but not as fast and in the way they wanted. That act - that bad agent was the reason why Paris and Connor became Realtors. That was all they needed to vow to never let the same fate befall anyone else, that befell them. Today Connor and Paris are focused on client service. Protection and top-shelf service with regard to their real estate clientele. They primarily work within the Santa Clarita Valley and Valencia CA. However, for a referral, where 80+ of their business is referrals they have License and Will Travel to other parts of Ventura County, Los Angeles County, and Orange County to handle real estate transactions for those who trust their real estate operation. Writing on their Real Estate Blog is a passion. SCVnest.com/blog is where you will find over 10,000 real estate articles. Go to SCVnest.com/radio to listen to their latest real estate radio broadcast.

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