FSBO Property - Homes For Sale By Owner
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Average Closing Costs for Home Sale
Everybody looking to sell a home no doubt wonders what the average closing costs will be. It is only natural to wonder, especially considering how expensive the closing costs can truly be if you are not careful. In truth, the costs aren't much given the amount of money the home typically sells for, but they can cause problems because they usually must be paid now and in cash. Essentially, they add to the down payment amount and can cause cash flow problems for buyers. This can can problems for the seller.
Remember, who pays these costs is negotiable. If you believe you are getting an especially good price you your property you can offer to pay some or all of theses costs to faciliate the sale. These funds will be taken out of your proceeds at sale and usually require no "up front" money from you, the seller.
As you might imagine, the average closing costs for a home are not easy to quote. Closings in one state involve different things and costs compared to another. Closing costs related to things such as points and property taxes are dependent on the particular deal and geographic location. Some states, for instance, do not collect property taxes, which means no deposit against them must be collected at closing. All and all, you should take the following figures with a grain of salt.
As of 2010, meaning the numbers have risen quite a bit over the past couple years, the average total closing costs for a $180,000 mortgage amounted to between $2,000 and $10,000. This figure is an admittedly vague calculation of costs ranging from appraisals to fees and taxes. Do not go into a real estate transaction assuming these figures will apply to your specific situation. Get a very clear written statement of all costs, so you know exactly what is coming. The settlement office should give you a HUD1 form with all these costs prior to settlement.
If you are selling a home, Seeking out the average closing costs for a home is a good sign. It means you are thinking through the process properly. That being said, don't rely on anything you read on the web, including this page. Get the exact terms from your lender and an escrow company. Get Free 1 Month Listing
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