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When navigating a real estate transaction, closing costs are an important consideration for both buyers and sellers. These expenses come into play at the final step of the buying or selling process, covering everything from mortgage fees to title transfers. Understanding what to expect in terms of closing costs can help you make more informed decisions and budget effectively for the big day. Here, we break down the most common closing costs and how they affect buyers and sellers.
Closing costs refer to the additional fees and expenses incurred at the close of a real estate deal, generally paid on the day the property title officially transfers. These costs can range widely depending on factors like property location, price, and local regulations, but typically add up to 2%–5% of the home’s purchase price for buyers. For sellers, these costs often include real estate commissions and any remaining mortgage payoff, along with other transaction fees.
If you’re buying a home, closing costs will likely involve several fees related to securing a mortgage, protecting the title, and confirming the property’s value.
For sellers, closing costs primarily consist of fees needed to finalize the sale and transfer ownership, along with any agent commissions and remaining mortgage payoff.
Both buyers and sellers can benefit from budgeting early for closing costs:
Closing costs are an essential part of any real estate transaction. By understanding and preparing for these expenses, buyers and sellers can ensure a smoother, more transparent transaction. At Coldwell Banker OnTrack Realty, we’re here to guide you every step of the way, providing insights and expertise so you’re confident from the first showing to the final signature.
For more information on buying or selling a home, or for guidance on your real estate journey, contact Coldwell Banker OnTrack Realty today. We’re committed to making every part of your real estate experience a success.