In real estate transactions, there are different costs involved aside from the immediate expenses. As a buyer, you’re obligated to pay the purchase price and the down payment and as a seller, you’re to pay for renovations and repairs. While these expenses are essential, there’s also something called closing costs.
When selling FSBO in Birmingham, the closing cost is paid by who? Both buyers and sellers are liable to pay closing costs and this depends on certain factors such as the price of the home, the type of mortgage the buyer has, the location of the house, and the people involved.
How much are closing costs?
There’s no general rule or guideline when it comes to closing costs, however, sellers are expected to pay 6-10 percent of the home’s purchase price and buyers are to pay 2-5 percent of the home’s sales price in closing costs.
Sellers closing costs can be easily deducted from the profit they made from the sale of the house but buyers will have to pay from their funds.
Closing costs for sellers
Below are the kinds of closing costs sellers are expected to pay; a seller can either choose to deduct these fees from the profit of the home sales or decide to pay separately
- Realtor commissions
This is being paid to the buyer’s and seller’s agent after the home sale.
- Title fees
This is the cost associated with changing the home’s title from the seller to the new owner.
- Homeowners association fees
If the home is part of a community, then the seller has to pay any outstanding homeowners association bills before closing the sale finally.
- Property taxes
The seller has to clear all outstanding property taxes before closing the sale otherwise the house cannot be sold.
Closing costs for buyers
Buyers pay the following costs at closing:
- Attorney costs
Real estate attorneys are responsible for reviewing title documents, contracts, and closing documents. Buyers pay them for their services.
- Home inspection fee
If you want to have a home inspection before you buy the house or property, you’ll pay the inspector.
- Appraisal fee
You’ll need to pay an appraisal fee because your bank will require an estimate of how much the home is worth as part of the mortgage application process.
- Underwriting/credit reporting fees
The buyer needs to pay the lender for the expenses of drawing a loan and other underwriting steps.
- Title search fee and insurance
Title insurance is paid to secure the home’s title against future claims or problems.
The Best Way To Sell Your House In Birmingham Alabama
If you want to sell my house fast Birmingham without having to pay closing costs, you’re better off selling to a cash home buyer. A cash home buyer will buy your home at the best price and you don’t have to pay additional fees like contingency fees or closing costs.
At Chase Pays Cash for Houses, we offer the best cash home buyer services in Birmingham Alabama. We buy houses Birmingham Alabama at fair cash prices. We ensure that our customers sell their houses fast without going through the stress and hassle of closing the sale. Selling your house is no big deal, but if you want to sell my house fast Alabama, you should sell to a reliable cash house buyer like Chase Pays Cash For Houses.