Monday, September 26

Who Pays the Closing Costs During a Home Sale? Buyer or the Seller?

Are you ready to sell your house?

There’s no denying that moving to a new home can be exciting, but the process can also be a bit stressful. After all, you’ll need to find a buyer for your current home.

Selling a house can be complicated. The key is to work with an experienced real estate agent who can make the process move along as smoothly as possible. It’s also important to understand who pays the closing costs. Fortunately, this article can help.

Here we take a look at a closing costs guide when buying a house. Keep reading to learn more.

The Home Selling Process

Let’s start by briefly discussing the nuts and bolts of the home selling process. When selling a home, you’ll typically work with a real estate agent to market your house. Once you’ve found an interested buyer, they will make an offer.

The seller accepts the offer, and the house is inspected, and a down payment is placed in escrow. When the contract is completed and signed by both the buyer and seller, closing costs must be paid to complete the transaction.

Closing Costs

But what exactly is included in closing costs? This is a term used to describe various fees and expenses that must be paid on closing day. In most situations, the closing costs will amount to between 3 to 6% of the purchase price of the home. Therefore it’s no small amount of cash.

Buyer Closing Costs

The buyer is generally responsible for several expenses at closing. This includes any fees related to the costs of securing a mortgage, the cost of a home appraisal, property taxes, HOA fees, and homeowner’s insurance.

Be sure to click here to learn how to sell your house in Portland as quickly as possible.

Do Sellers Have to Pay Closing Costs?

The seller isn’t totally off the hook. For example, the seller must pay what’s called “seller concessions”. These are closing costs the seller agrees to cover in order to complete the transaction. This can include attorney fees, mortgage discount points, and property taxes.

Thus it’s important to understand how to negotiate seller concessions, especially in a buyer’s market where the seller might need to sweeten the deal, especially when a home is in poor condition but needs to sell as quickly as possible.

A Guide to Understanding Who Pays Closing Costs

It’s no secret that moving from one house to another is one of the most memorable experiences in life. That’s why it’s important to streamline the process as much as possible so that your memories are positive. Fortunately, having an understanding of who pays closing costs will help make the process a little less overwhelming.

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