You know the sale price for a parcel of property – so that's the total cost, right? The truth is, there are several financial details which need to be taken into account to determine how much you'll be paying (or be paid) at the closing of a real estate deal.
A real estate closing is the last step of a property purchase. Also called a settlement, this is where you'll sign the final paperwork, transfer ownership of the home and pay any outlying financial obligations. This is essentially the finish line – hooray!
Back to those outlying financial obligations; you may have heard the term 'closing costs' but aren't sure exactly what they are or who pays them. Closing costs are fees due at the closing of a real estate transaction – not to be confused with your deposits or down payments – which cover things like attorneys, title services, appraisals, recordings and more.
If this is your first time buying a home, you may be surprised to learn that there are costs due at closing beyond what you've already paid for the home. Before you sit down at that closing table, your mortgage broker should provide you with a good faith estimate of what your closing costs will be. This estimate should closely match the total you see when you close the loan and purchase your new house.
On the seller side, talk to your listing agent to determine closing costs. The listing agent should be able to provide a 'net sheet,' which is a document used in real estate to provide sellers with a close estimate of their net proceeds – the amount of money they'll receive from the sale of a property after deducting expenses such as commissions and closing costs.
Thinking of buying or selling for the first time and need a little guidance? Any of our qualified real estate agents can help you every step of the way! Contact our office at 617-600-8415 or info@wearecommonwealth.com to begin the process today.
