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 Coram?
Closing costs refer to all of the fees that must be paid at the closing table. Depending on where you live, the fees and costs can vary. But generally, closing costs include, but are not limited to:
- Notary fees
- Transfer costs
- Transfer taxes
- Appraisal costs
- Inspection fees
- Origination fees
- Recording fees
- Title insurance
- Underwriting fees
- Bank fees
- Courier fees
- Wire transfer fees
- Liens against the home, which 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
- Commissions!
Who’s Paying?
While the buyer will usually pick up a number of these, it is important to note that the seller often pays most or all of the commission. Other than your possible mortgage balance, this is by far the biggest cost when it comes to costs at the closing table. Negotiating the other costs during the sale process is becoming increasingly popular. In an effort to lure in more buyers, sellers are more frequently picking up the tab when it comes to the closing costs.
As a seller, you will also need to pay your share of the year’s property tax, up until the day of closing. Any HOA fees or other community costs should be prorated and paid at this time as well.
What Are Seller Subsidies?
This is an amount negotiated between the buyer and seller. It is the amount the seller agrees to pay towards the closing costs. For example, you can offer to put $3,000 towards closing to help relieve some of the costs for your buyer. Overall, paying these subsidies is often a small price to pay to bring buyers to the table!
Can You Avoid These Costs?
Yes! By working with a direct buyer who will pick up all costs associated with the closing! A direct buyer will not charge you a commission, as they are not an agent. Many times, direct buyers will offer to pick up all costs, which 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. However, if an inspection shows additional repairs are needed, a buyer may make their offer contingent on repairs being made. A buyer and seller can work this out before going to closing.
If you would like to learn more about the selling process or if you have any questions about selling your Coram home, send us an email using the form, or give our office a call now! (631) 926-0047
Need to sell your house fast? Get a fair, no-obligation cash offer from Gull Group Inc. Call (631) 926-0047 or fill out our short form.