The cost of buying a new home can really add up.
Between mortgage rates, home insurance, utilities, getting your house cleaned, and hiring a handyman to fix any necessary repairs, you’ll likely spend thousands of dollars when it comes time to close on a property.
Who exactly foots the bill for all of these closing costs? It depends on a number of factors. Read on to find out more about who pays closing costs when buying a house.
Who Pays Closing Costs?
The answer to who pays what for closing costs can vary based on the state in which the transaction is taking place, the type of transaction, whether the property is being purchased or leased, and other factors.
In a typical home purchase, the buyer and seller agree to who will pay which closing costs. Usually, the seller pays for the real estate agent’s commission and certain other costs, while the buyer pays for things like the loan origination fee, appraisal fee, and title insurance.
Be sure to have a conversation with your real estate agent and/or loan officer to determine who will be responsible for paying closing costs.
How to Avoid Paying Closing Costs?
One way to avoid paying a closing cost is to negotiate with the seller to have them pay all of the costs. Another way is to get a loan that doesn’t require closing costs, which means that the lender pays the costs on the borrower’s behalf.
Finally, you can use a combination of these methods to save money on this major expense. No matter how you do it, avoiding closing costs can save you a lot of money.
Who Benefits From Paying Closing Costs?
The party who benefits from paying closing costs is the one who negotiates the terms of the contract. In order to save on costs, it is often advantageous to the party paying closing costs to be the one who also pays for the property taxes and insurance. This allows the other party to not have to worry about these extra costs.
Paying closing costs can be a wise way to be sure that you’re getting the right mortgage for you and your family. Feel free to check out souqh.ca for more information about mortgages and to talk about rates today.
How to Negotiate?
Home buyers and sellers typically pay different fees at closing. Buyer closing costs might range anywhere from 2-5% of the home’s purchase price in closing costs, while seller closing costs might range from 5-10%. However, there are many ways to negotiate who will pay closing costs.
If you’re a seller, you may be able to negotiate with the buyer to pay some or all of the closing costs. This can be a huge advantage, especially if you’re tight on cash. Keep in mind that both buyers and sellers can negotiate who pays closing costs, so it’s important to know your options and be prepared to negotiate.
Learn the Impact of Closing Costs Can Your Homebuying Experience
While closing costs can be a significant expense, they are often worth it in the long run. Knowing what these costs are and who pays closing costs is important in the home-buying process.
For more real estate tips, check out the rest of our blog. We’ll help you navigate through the process of finding, renting, and buying properties.
