What are “Closing Costs?”

by Sally Soles

As a Realtor with 17 years of experience in the industry and founder of the Smart Service Sales System™, I take the pain and worry away so you can spend your time with, and focus on, what matters most - your family. Because that's what this is all about.

An answer to the most frequently asked question I get.

What are my closing costs going to be? This is the most common question in real estate. The answer is “It depends.” What it depends on is if you are the buyer or you are the seller. There are different fees associated with each side. For instance, there are “lender associated fees” that are charged to the buyer which the buyer pays at closing. An example of seller closing costs would be state and county Transfer Taxes—these are paid by the seller at the time of settlement.

But these are just two examples. To really understand all the fees being charged, you have to understand how many services are involved in any given transaction. Need a survey done? There’s a fee for that (buyer pays). Pest inspection shows active termites and the damages need repairing? There’s a charge for that repair service (seller pays). Deed preparation, settlement fee, recording the mortgage and deed transfer, review of title, Realtor fees, septic and well inspections, homeowner’s insurance, VA Funding Fee (for VA loans only), local and state government fees and local and state real estate taxes are just a few examples of fees that are charged in every transaction to either the buyer or seller.

To know what closing costs you’ll be charged, ask a professional. That person will review with you what your scenario is and will be able to tell you what fees you will be charged. While the exact amount will depend on factors such as when closing occurs, you will have a good idea of the cost of your transaction. Keep in mind, there is no “one size fits all” scenario, as every transaction is unique.

If you have specific questions about your real estate goals, reach out to us and we’ll be happy to offer you relevant and accurate information.

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