The most common question we receive during a closing process from a buyer or a seller, is: How much are closing costs?
There is never a perfect answer to that question. These costs vary greatly depending on the type of mortgage, the attorney's fees, the price and size of the home, and with the lender (and your state/town/county). They can range from 2% to 5% of the purchase price of the property for buyers, and upwards of 5-7% for sellers.
Let's start with seller's closing costs, since they are easier:
for the seller
Keep in mind that this list is not exhaustive, but gives a good benchmark.
for the buyer
A bit more difficult to estimate are the closing costs for the buyer, which are detailed here:
As you can see, the assumptions made here can throw these numbers into HUGE ranges that will catch you by surprise. We recommend that you communicate with your attorney, lender, and Realtor about these closing costs prior to making offers, so you are well informed. The Lender should give you a statement of fees and closing costs before you commit to any interest rate lock.
I will also mention that there are a handful of other factors that effect these closing costs such as the state in which you live, the city, and the time of the year (as specified in the above).
However you ended up on this post, feel free to comment or send up a private message if you have any questions at all about closing costs or the buying/selling process.
We (Joe and Chris Balestriere) are Realtors in Fairfield County, Connecticut. Our blog is meant to educate buyers and sellers and equip them with tools to get the most out of their Realtor, whether it is us or someone else. We focus on technology and how it enhances the work we do for our clients--we are not top CT Realtors by accident.