You’ve likely heard about closing costs, but do you know everything that they include? Check out our closing cost “FAQ” to learn more about what closing costs are all about.
What Are Closing Costs Exactly in College Station?
Every fee that must be paid during the finalizing of a sale is regarded to as a closing cost. The fees vary depending on where you live. But generally, closing costs include, but are not limited to the following:
- 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
While it is true that the buyer handles most of these, the seller usually handles 100% of the agent’s commission. Agent commission is about 6% or more of the final sale process. Apart from your possible mortgage balance, this is the biggest cost you will have to pay when closing a deal. It is becoming more popular to negotiate the other costs during the sale. To attract more buyers, many sellers are frequently offering to pay the closing costs.
Up until the day of closing, you as a seller must pay property tax. Any HOA fees or other community costs should be prorated and paid at this time as well.
What Are Seller Subsidies?
Seller subsidies are the amounts that have been negotiated between the seller and buyer, and is a percentage of the closing costs that the seller has agreed to pay. For example, you can offer to put 3k towards closing to help relieve some of the costs for your buyer. Overall, paying these subsidies are often a small price to pay to bring buyers to the table!
Can You Avoid These Costs?
These costs can be avoided if you work with a direct buyer who is willing to pay all the costs associated with the closing. By selling to a direct buyer, you don’t need the services of an agent and you won’t pay commission. Most times, a direct buyer will offer to pay all the costs. This will save you money and hassle at the closing table.
Are Repairs Included?
This is another one that is negotiated between the buyer and the seller. If the home is in need of some obvious repairs, the seller will often take care of these before putting their home on the market. If there are additional repairs needed after an inspection is conducted, the buyer can make his offer contingent on repairs being made. The buyer and seller can work things out before they go to close.
If you would like to learn more about the selling process or if you have any questions about selling your College Station home, send us an email using this form, or give our office a call now! (979) 431-1663