| Buying

What are closing costs?

Closing costs are fees associated with a real estate transaction that are paid at closing on both the buyer and seller side. Closing is the point in time when funds change hands and the title of the property is transferred from the seller to the buyer.

 

How much will I pay?

A typical range for a buyer to pay in closing costs is usually 2-5% of the purchase price. For a seller, the cost of closing with commission included can range from 6-8%. A great tool to use is the PalmAgent ONE app, courtesy of American Land Title. The app breaks down closing costs for both buyers and sellers, giving you an itemized list of the fees you could expect to pay. Disclaimer: Closing costs vary depending on what lender and title company you use, each having their own closing fees.

 

Here is an example of some of the closing costs you can expect to see for both buyers and sellers:             

Buyers Closing Costs:                                                          

  • Attorney fees
  • Home inspections
  • Title policy
  • Escrow
  • Wire fees
  • State, county, or city prorated taxes.
  • Home protection plans/warranties
  • Loan origination fee
  • Survey expense
  • Appraisal cost

 

Seller Closing Costs:

  • Attorney fees
  • Escrow
  • Title policy
  • Tax certificate
  • Interest
  • Buyer & listing broker fees
  • Prorated taxes
  • Home protection plans/warranties
  • Survey expense

 

Can I avoid paying closing costs?

Buyers can negotiate with the sellers to have them pay part, if not all, of their closing costs for them. Expenses like the title insurance policy, survey costs and home warranties are often negotiable between a buyer and a seller. However, this does make your offer less attractive, which will not be good if there are multiple offers on the table.

There are various loan programs out there to fit your financial needs. Please contact our office, 806-367-8334, or get in touch with some local lenders.

 

Check out this great Basic Loan Program Guideline provided by Amarillo National Bank.

 

Thinking of buying or selling? Check out our Ultimate Guide to Buying or Selling a Home.

 

To catch up on your real estate lingo, see our Glossary for Buyers and Sellers.

                                                   

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