Buyer & Sellers Fees to Expect
What kinds of fees are associated with closing a real estate transaction?
Whether you’re a buyer or a seller, every real estate transaction is associated with closing costs. Since many clients ask me what exactly closing costs entail, today I’ll break down some of the fees associated with closing a transaction. Bear in mind that these fees do not include your down payment.
Buyers and sellers have to pay different fees. For example, lenders have origination fees, and any points purchased to lower the cost of your interest rate over the life of your loan will also be part of your closing costs. Beyond that, buyers have to pay real estate taxes and insurance. If you’re a buyer, speak to your lender for a full breakdown of the different closing costs associated with your transaction.
"Buyers and sellers have to pay different fees."
For sellers, the biggest closing cost will be the commission that you pay to your agents. Additionally, sellers have to pay a transfer and recordation tax; it’s normal for sellers to pay the transfer tax for the buyer. The equation to find out what your transfer fees will be is 1.45% of the sales price for any transaction above $400,000. For anything below $400,000, it’s 1.14% of the sale price. Your agent can make an estimated net sheet so that you know how much you’ll be netting after you close the transaction.
If you have any questions or if you’re thinking about buying or selling, don’t hesitate to give me a call or send me an email. Don’t forget to subscribe to my YouTube channel!