What does the buyer pay at closing?

The two most talked about topics in real estate financing are purchase price and down payment. Let’s not forget one of the most important pieces, closing cost.

Closing costs are the fees that are paid at the time the property changes ownership. The average price tag on closing costs typically runs between 2% and 4% of the sales price. So I typically just use “about 3%” when speaking with buyer clients.

If you can’t pay, you can’t close. Make sure you have a ballpark estimate of how much you will need to close. I can pull together an estimate worksheet for you that utilizes average prices for common services provided. (This is just an estimate to give you a round-about number. Your lender and title company will be able to give you accurate pricing for services rendered.)

What’s included in your closing cost?

This can vary but here are the usual suspects. I even pulled together a breakdown of common closing cost. The link to this is in the YouTube comments.

Here is the closing cost breakdown:

Prices vary from lender to lender and by location.