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One aspect of buying or selling a house is being prepared to pay closing costs. The amount of closing costs does vary based on different factors and the location of the home. Closing costs are just one of the many costs that sellers should remember when attempting to determine how much they will have left after the sale of their home.
Closing is the final stage of selling your house. It is where you receive money from the buyer and your title is transferred into their name. The closing processes are usually handled by an escrow company to ensure everything is completed correctly.
Several closing costs will be deducted from the sales proceeds during the closing process. The sales proceeds are the money left after paying off your mortgage, any prepayment penalty, and your closing costs.
The closing costs for sellers are between 2% and 4% based on the property’s sales price. The buyer’s closing costs are typically more and range from 7 to 10% of the sales price.
The reason they are called closing costs is you do not pay them until you close on the home. Some of the more common closing costs you could expect to pay include:
The reason you have to pay closing costs to sell your home has to do with the types of costs and fees associated with transferring the legal ownership of the house to a home buyer. In addition, certain expenses are your financial responsibility, such as the property taxes owed for the current tax year up until the date of your closing.
As you saw, many factors determine how much closing costs will be for home sellers. However, as we mentioned earlier, you should expect to pay between 2% and 4% of the house’s sales price. So, if you sold your home for $300,000, you should expect your closing costs to be between $6,000 and $12,000.
The easiest way to calculate closing costs before you even have any offers on the home is to multiply the listing price by 2% and 4% to get the closing costs range.
There are several effective ways to reduce your closing costs as a seller. For example, if you use a real estate agent, you could attempt to negotiate a lower real estate commission. On the other hand, you can completely eliminate real estate agent commissions by putting your home up as a “for sale by owner” listing.
Other ways to reduce your closing costs include:
There are several benefits of selling your home to a cash buyer or cash investor, especially when you sell your home yourself without a real estate agent. For starters, cash buyers and cash investors are not going to ask you to make seller’s concessions. Instead, they usually offer a slightly discounted sales price since they are paying cash.
Next, the seller does not have to wait for weeks or months for the buyer to secure financing. This advantage also cuts out several of the lender requirements that increase closing costs, such as home inspections and home appraisals.
In addition, you can cut down the closing time from the month or two that usually occurs when you are selling to a home buyer who needs to obtain financing. Instead, you could close on the home within a week of coming to a sales agreement.
When you want to lower your closing costs and sell your home, you should consider using 800CashToday. First, our service is free for home sellers and helps you find a local house buyer who buys houses for cash and knows the ins and outs of your neighborhood.
Next, our process is simple and easy to use and can help you get the best cash offer on your home. You do not have to spend time finding a real estate agent, making home repairs, staging the home, and all those other things that are typically required when selling your home conventionally.
Instead, you do not have to do anything to list and sell your home for cash when you sell it through us. You can list it in “as-is” condition, which is perfectly acceptable. You do not have to waste time and money fixing up the house or even staging it.
Plus, we never charge a commission to sellers for using our service. So that closing cost is automatically eliminated when you work with us. Other advantages our home sellers gain include:
It is easy to sell your house and reduce the amount of closing costs you have to pay by selling your home to a cash buyer by selling it with 800CashToday. Get started by filling out the simple online form to get your free, no-obligation cash offer today! You may also contact us at 1-800-CASH-TODAY if you have any questions or would like to speak with our local buyer.