Many first-time homebuyers don’t realize that they will be responsible for certain expenses that are due at closing. In addition to a down payment, closing costs are often divided between the seller and buyer. These expenses are a normal part of the home buying process, some of which are traditionally placed under the responsibility of the seller or buyer. Let’s define several standard closing costs and identify which party is typically responsible for this expense.
Common Closing Costs Explained
Those buying a house should anticipate paying an additional two to five percent of a home’s selling price in closing costs. Those selling a property should anticipate paying roughly six to ten percent of the home’s selling price in closing costs.
Common closing costs buyers take on when buying a house include:
Common closing costs sellers take on when selling property include:
In some situations, buyers may be able to negotiate with sellers to relieve themselves of various closing costs. For example, sellers who desire a fast sale may be willing to cover certain costs or buyers may be willing to accept a lower counteroffer if the seller agrees to absorb some of these expenses. If you’re interested in buying a house, we suggest that all buyers anticipate these additional costs and save accordingly.