What are closing costs?
Whether you’re buying or selling a house, closing costs are an important factor to consider. Closing costs are additional expenses, beyond the actual price of a property, that are incurred to complete a real estate purchase.
In the U.S. real estate market, closing costs can be either recurring or non-recurring. Nonrecurring costs, as the name implies, are only paid once at the time of purchase. On the other hand, recurring costs must be paid repeatedly after the purchase of a property.
Closing costs vary for each real estate transaction, and can include (but are not limited to):
- Title Insurance. This protects buyers against losses caused by a title defect.
- Appraisal Fees. These may be incurred to confirm the fair valuation of a property.
- Property Taxes. These are often prepaid for a set amount of time when the purchase is completed.
- Escrow Fees. These may be paid to the escrow agent and/or company that has assisted in the purchase.
- Legal Costs. May be incurred to pay for the services provided by any lawyers involved.
How expensive are closing costs?
As a buyer, closing costs have the potential to drive the price up, to a level you can’t afford.
Closing costs are usually between 2 to 5% of a property’s purchase price. For a $1,000,000 sale, the closing costs could be anywhere from $20,000 to $50,000!
To find out what your own closing costs might look like, check out this closing cost calculator from the Bank of America. If its still early in your real estate journey, you can also utilize this calculator to determine what property price you’ll be able to afford.
How can TREND Real Estate save you money?
If the purchase price of your dream home wasn’t already intimidating enough, excessive closing costs can throw an additional wrench into your plans. However, that doesn’t mean your ideal home is out of reach. TREND Real Estate is on your side, and we’ll make sure you get everything you want.
Unlike other real estate groups, we are committed to ensuring you receive the maximum benefit for your money. We have the utmost respect for the time and effort that you put into your home search, and believe that you deserve to be rewarded! That’s why we refund 50% of our agents’ commission back to our clients. This groundbreaking policy will allow you to put more money towards your closing costs, and stretch your budget farther.
By rebating 50% of our realtor commission, you will save thousands of dollars, so that you can afford the house of your dreams. For example, in a $1,000,000 sale, your 50% commission refund can be calculated as:
TREND Real Estate_Abby Manrell_Article
$1,000,000 x 2.5% (average agent commission) x 50% (your refund) = $12,500
Depending on your closing costs, TREND Real Estate can help you pay for over half of these additional fees! Where else can you get five figures for free?
We’d love to help you realize your dreams. Read here to learn more about how we can do it.
