You must have already heard about closing costs if so do you have an idea as to what is included? Take a look at our closing cost “FAQ” to know as much as you can on what closing costs is.
What Are Closing Costs Exactly in Wichita?
Closing costs pertain to the sum of all the fees that should be settled at the closing table. Base on your residence, the fees and charges may be different. Mostly, closing costs would have, but not limited to the following:
- Notary fees
- Transfer Costs
- Transfer Taxes
- Appraisal Costs
- Inspection Fees
- Origination Fees
- Recordings Fees
- Title Insurance
- Underwriting Fees
- Bank Fees
- Courier Fees
- Wire Transfer Fees
- Liens against the home 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?
Although the buyer may normally take most of these, keep in mind that 100% of the commission is generally paid by the seller. This will be around 6%+ of the closing sale amount. Aside from your supposed to be the remaining amount from your mortgage, this typically is the largest spending to be made on the costs at the closing table. Maneuvering the other costs on the sale process is beginning to be highly known. With the intent to attract many buyers, sellers more often pick up the tab if it’s about the closing costs.
If you’re a seller, you also need to contribute an amount that would pay your portion of the year’s property tax, up to the day of closing. Any HOA fees or further community costs must be prorated and paid at this period also.
What Are Seller Subsidies?
This is the cost agreed upon by both the buyer and seller. It is the portion the seller is willing to pay on the closing charges. It’s like, offering to put 3k towards closing to help ease some of the expenses for your buyer. By paying these subsidies are just a little cost to pick up that would fill the table with buyers!
Can You Avoid These Costs?
Absolutely! By finding a direct buyer willing to shoulder the entire costs related to closing! Direct buyers are not agents so you don’t need to give them any commission. Mostly, direct buyers will propose to pay for all costs, reducing expenses and saving you cash and trouble at the closing table.
Does this include repairs?
Repair is one more thing that is needed to be discussed by the buyer and the seller. When apparent fixes must be done on the house, the seller usually manages these prior to putting their house for sale. But if after a thorough examination it is discovered that more restoration should be done, a buyer can propose an offer dependent on additional repairs to be done. A buyer and seller can agree on this prior to closing.