There are certain standard costs related to closing the sale of a house. These fees are divided between the Buyer and Seller, as written in the contract.
Closing Costs the Buyer May Have:
- Mortgage Lender fees, which include charges for loan processing, appraisals, underwriting, preparation and establishing an escrow account, etc.
- Third-party fees such as charges for insurance, title search, closing fees to the Title Company, processing fees to your Real Estate Agent’s Broker, etc.
- Government fees, which include deed recording and state & local mortgage taxes
- Escrow and interest fees, which include homeowner’s insurance, loan interest, real estate taxes, and private mortgage insurance (if applicable)
Closing Costs the Seller May Have:
- Title insurance fees, if applicable
- Broker’s commission is a fee usually costing between 5% to 7% of the purchase price, split between the Listing and Selling Brokers
- Third-party fees such as closing fees to the Title Company, processing fees to your Real Estate Agent’s Broker, etc.
- Local property transfer tax, county transfer tax, state transfer tax, and state capital gains tax
- Credit to the Buyer of unpaid real estate taxes for the prior or current year
- Miscellaneous fees and/or credits to the Buyer can occur from correcting problems during the inspection
