What are the closing costs?
Closing costs are the fees, taxes, dues and any other items that have to be settled when the title of the property is transferred to the buyer. In plain English, it’s all the stuff left over when the sale is closed. This usually covers some routine items, such as home warranties, recording fees and realtor fees, and they can be negotiated at the time of sale.
How much are you going to pay in closing costs?
That all depends on where you are and the circumstances of the sale.
A ranch style home sold for cash for $150,000 in the country will have significantly different closing costs than a $150,000, mortgage-financed condominium sold in an HOA neighborhood in the city.
You can expect to pay between 2-5% of the home’s purchase price in closing costs.