Closing costs can be a bit of a mystery, but fret not, we’re here to shed some light on what they truly encompass. Dive into our handy “FAQ” to uncover the intricacies of closing costs in Sacramento.
Sacramento’s Closing Costs Unveiled
Closing costs are the amalgamation of fees and charges that surface during the closing of a real estate transaction. The specifics may vary based on your location, but in general, they include:
- 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
- Clearing of any home liens for a clean title
- Credit Report Fees
- Administrative Fees
- Attorney Fees (if applicable)
- Outstanding mortgage or loans against the home
- Possible pre-agreed repairs or pest control
- And don’t forget, COMMISSIONS!
Who Bears the Brunt?
Usually, buyers shoulder most of these expenses, except for one major exception – the seller typically pays 100% of the commission, which can amount to 6% or more of the final sale price. But, sellers are increasingly open to negotiating other costs during the sale to entice more buyers.
As a seller, you’ll also need to contribute your share of the year’s property taxes, up until the closing day. HOA fees and community expenses should be prorated and settled at this point too.
Seller Subsidies – A Game Changer
Seller subsidies are a game-changer in the world of real estate. It’s the negotiated percentage the seller agrees to cover when it comes to the closing costs. Imagine offering to contribute $3,000 towards the closing expenses to ease your buyer’s burden. It’s a small investment that can attract more buyers to the table.
Is There a Way to Dodge These Costs?
Indeed, there is a way! Partner with a direct buyer who takes the responsibility of covering all the closing costs. Direct buyers won’t charge you a commission since they’re not agents. Often, they step up to cover all the expenses, saving you both money and the hassle at the closing table.
The Repair Dilemma
The need for repairs is another facet to consider. Typically, if a home requires noticeable repairs, sellers take care of them before listing. However, should an inspection reveal additional fixes, a buyer may make their offer contingent on those repairs being addressed. The specifics can be worked out between the buyer and seller before the closing takes place.
If you’re looking to dive deeper into the home-selling process or have any queries about selling your Sacramento property, don’t hesitate to reach out to Laurel Buys Houses or give our office a call today at (916) 476-2381.