Selling Your Home? – All You Need To Know About Closing Costs

It’s the final countdown to home sale day. The last task on your to-do list is to pay your closing costs. But what are these costs and why do you have to pay them? Shouldn’t they be included in the purchase price or deducted from your down payment?

It’s true that closing costs are sometimes added to the bill, but these fees are generally not negotiable. Why? Because they cover everything from taxes and insurance payments to property inspections and appraisals, all of which you need before you can call your home yours. These costs can be anywhere between 1% and 5% of your home’s purchase price.

What are closing costs?

First off, it’s important to understand what exactly these fees cover. When you close on the sale of your home, you don’t just hand over a stack of cash to your real estate agent and walk away. This would be quite dangerous.

Instead, closing costs are the fees that are incurred in order for you to legally sell your property. These are necessary expenses that include certain legal procedures needed to complete the sale or transfer of ownership rights between parties. It usually involves some trip to the bank, which you will end up footing the bill for.

What Is Included In Closing Costs?

It’s easy to feel overwhelmed by all the fees you’ll have to pay when selling your home, but understanding what they are and why they’re charged can help reduce that stress. Here’s a list of some of the fees involved in selling a home:

– Realtor commission – The commission is negotiated between you and the real estate agent representing your home’s buyer. It’s typically 6% of the home’s purchase price; however, there can be some wiggle room in this percentage when both parties are agreeable to a different number. Sometimes sellers opt for lower commissions if they think it will help them sell their homes more quickly.

– Title research – The title company’s representative does a search of the property’s public records to see what liens, mortgages, or restrictions are in place for your home.

– Closing fees – These are payable at closing and include costs associated with recording deeds, attorney fees, courier services to get documents notarized, courier services to transfer loan funds, and other miscellaneous fees.

– State transfer tax – The state’s government applies this fee to pay for public services related to the property’s sale. It varies by state but is usually around 1%.

-  Title insurance – This protects you in case your buyer finds out any information about your home that you were unaware of such as a lien or other legal claim against it.

– Home warranty – If you choose to sell your home “as is,” this will cover items such as major appliances and the heating and cooling system for a set period, typically 10 years.

Avoid The Fees – Sell Your Home To Home Buyers OKC

The best way to avoid paying all those fees and home closing costs are by selling to Home Buyers OKC, your best option if you want to sell your fast in Edmond, OK. 

Since we work without middlemen, we offer cash for your home, and buy your house as-is, we can help you not only to sell your house fast, but save a lot of money in fees, commissions, and closing costs.

Want to get a cash offer on your property? Get in touch with us today to schedule a visit from one of our team members to get you a cash offer ASAP.