Closing Costs
Definition of "Closing costs"
- What are the closing costs?
Closing costs are the fees and expenses paid during Closing. They are not included in the final purchase price of the property.
- How much are the closing costs?
Normally, the closing fees are somewhere between 2 to 5 percent of the final purchase price of the property.
- What is included in the closing costs?
That varies from state to state, the type of property in question and the type of loan the bank gave to the home buyer. But here is a list of expenses typically included:
Application fee
Appraisal
Credit report
Escrow fee
Home Owner Association’s Transfer Fee
Private Mortgage Insurance (PMI)
And many more…
- Who pays the closing costs?
Typically the home buyer, but you can try to negotiate with the Home Seller. Some Home Sellers do accept to share or even assume this burden, most of the times deducting it from the final purchase price of the property. That's why Understanding the Housing Market on your Own is important. If you're in a Buyer's Market, a Home Seller will likely cede in order to sell his house once and for all.
Real Estate tips:
Take a look at our Glossary to find other terms and kick your real estate vocabulary up to a new level!
Also search through The Official Real Estate Agent Directory® to find a trustworthy agent to help you in all stages of a home sale.
Popular Real Estate Terms
Siding made out of aluminum, plastic derivates, or cement asbestos having ridges and valleys which is attached to the sides of buildings. ...
The gross operating income definition is the total income that a real estate development receives from rentals and services before any costs or expenses are subtracted. Gross operating ...
(1) Written statement by a responsible individual or entity of the correctness and reliability of something. (2) Written permission to do something, such as receiving a real estate ...
A fixed asset whose utility is derived from its physical attachment to a property and which usually cannot value or damage. A fixture, under the terms of a lease or other agreement, can be ...
Negative characteristics about real property which do not meet the needs of the usual occupant. Examples are inadequate lighting in the rooms and a one-car garage when a two-car garage is ...
Refers to state statues protecting the public against securities frauds of real estate companies. ...
The Principle of conformity states that conformity is achieved when all the entities or objects comply to the same standard, rules or laws. This creates a balance and stability between ...
Style of life emphasizing outdoor activities, amenities, and recreation. Example are campers and barbecues. It is usually on a short-term basis. ...
One tenth of a cent. Mills are a common term in expressing tax rates per dollar of assessed valuation. For example, a property is taxed at the rate of 80 mills. If a property were assessed ...
Have a question or comment?
We're here to help.