Closing Costs!!! What Are Those and Who Pays Them???
This is a common question from consumers, both buyers and sellers alike want the answer. Simply put closing costs are the fees associated with the purchase and sale of real estate. Both buyer and seller have closing costs which are attributed to them at the time of closing.
While there are customary closing costs for the buyer and seller, what these costs are vary.In addition, who pays for these costs may be restricted based on the type of transaction (i.e. foreclosure, short sale, etc.) and the type of loan the buyer is obtaining and from whom the loan is obtained. And for those closing costs that are not restricted in any way the buyer and seller have the right to negotiate who pays those.
Confused yet??? This is just one reason it is important to have an experienced real estate agent represent you whether you are buying or selling a home or any real property. It is important to have the knowledge and experience of someone to guide you through the process of purchasing or selling property.
Here some of the customary closing costs for buyers and seller in the metro Atlanta area.
Buyers can expect to pay for (approximately 3% of the sales price):
- Loan Origination Fees
- Appraisal(s)
- Title Service and Lender’s Title Insurance
- Recording Fees
- Homeowner Association Initiation/Processing Fees
- Owner’s Title Insurance (optional)
- Termite Letter (optional)
- Survey (optional)
Sellers can expect to pay for:
- Real Estate Commission
- Any liens which are held against the property
- Overdue Homeowner Association fees
- Transfer Taxes
Now that you know the basics here are some steps to help you close your transaction with confidence. Hire an experienced real estate professional. Know and understand any restrictions regarding who pays specific closing costs made by the seller or lender. Make sure your real estate contract clearly states the closing costs each party is expected to pay. Review your settlement statement for accuracy prior to signing any documents at closing.
If you are interested in purchasing a home in the metro Atlanta area and need a real estate professional guide you through the process please contact me via email at Stacey@MetroATLRealEstate.com or call me at (678)523-1621. You may also visit my website: www.MetroATLRealEstate.com.
My team focuses on: Alpharetta, Atlanta, College Park, Douglasville, Dunwoody, East Point, Fairburn, Fayetteville, Hiram, Marietta, Peachtree City, Powder Springs, Roswell, Sandy Springs, Smyrna and Union City.
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