Perhaps you have heard of closing costs, but do you know all that they include? For more information about closing costs, read our “FAQ”.
What Are Closing Costs Exactly in Savannah?
Closing costs are all the fees that need to be paid at the closing table. Depending on where you live, the fees and costs may be different. Closing costs generally include the following, but are not limited to:
- Notary fees
- Transfer Costs
- Transfer Taxes
- Appraisal Costs
- Inspection Fees
- Origination Fees
- Recordings Fees
- Title Insurance
- Underwriting Fees
- Bank Fees
- Courier Fees
- Wire Transfer Fees
- Liens against the home will need to be paid to clear the title
- Credit Report Fees
- Administrative Fees
- Attorney Fees, If Applicable
- The balance of your mortgage or loans against the home
- Possibly repairs or pest control if this has previously been agreed upon
- COMMISSIONS!
Who’s Paying?
Even though the buyer usually picks up a number of these, the seller typically pays 100% of the commission. This is usually about 6% or more of the final sale price. By far, this is the biggest cost at the closing table after your possible mortgage balance. Many sellers are negotiating the other expenses during the closing process. In an attempt to attract more buyers, sellers frequently pick up the tab for closing costs.
Sellers must also pay their share of the year’s property taxes, up until closing. Any HOA fees or other community costs should also be prorated and paid at this time.
What Are Seller Subsidies?
This is an amount that the buyer and seller have agreed upon. It is the percentage the seller will contribute towards closing costs. As an example, you can offer to put 3k toward closing to help relieve the buyer of some costs. Generally, paying these subsidies is a small price to pay for bringing buyers to the table!
Are these costs avoidable?
Absolutely! Choosing a direct buyer will ensure that you won’t have to worry about anything related to the closing! You won’t have to pay a commission to a direct buyer since they are not an agent. Oftentimes, direct buyers will cover all closing costs, which will save you both money and hassle.
Do repairs come with the package?
Likewise, this is another deal that is negotiated by the buyer and the seller. When a home needs repairs, the seller will usually take care of them before putting it on the market. In the event that additional repairs need to be made after an inspection, the buyer may condition his offer on those repairs. A buyer and seller can negotiate this before closing.