Learn more about Closing Costs
If you’re planning to buy or sell a home this year, there’s one expense you can’t afford to overlook: closing costs. Almost every buyer and seller knows they exist, but not that many know exactly what they cover, or how different they can be based on where you’re buying. So, let’s break them down.
What Are Closing Costs?
Your closing costs are the additional fees and payments you make when finalizing your home purchase or sale. Every buyer and seller has them. They typically include things like homeowner insurance and title insurance, as well as various fees for the following:
- Loan application
- Credit report
- Loan origination
- Home appraisal
Home and Termite inspections (maybe other inspections too)
Staging
City and County fees and how they are allocated
Compensation to agents
Statewide vs. Local:
Why the Numbers Look So Different: When you search for information about closing costs online, you’ll often see a large difference. While that’s a useful starting point if you’re working on your home buying budget, it doesn’t tell the whole story. In reality, your closing costs will also vary based on:
Taxes and fees where you live (like transfer taxes and recording fees) Service costs for things like title work in your local area
While the home price is obviously going to matter, state laws, tax rates, and even the costs for title services can change what you expect to pay. That’s why it’s important to know ahead who pays for what during a sale. I reached out to my title company to give a ballpark, here’s a few local counties and how costs can vary:
If you want a real number to help with your budget, your best bet is to talk with your lender, or reach out to me. Once I know what you are planning, I can contact the Title Company and get you a close approximation of costs.
Bottom Line: Closing costs are a key part of buying and selling a home, but they can vary more than most people realize. Knowing your numbers can go a long way and help you feel confident about your purchase. After all, no one likes unpleasant surprises!
If you’re thinking to buy or sell, reach out to me at 650-224-4747, I’d love to help.
