Did you know that sellers sometimes have to pay money as a part of selling their homes? That’s right: it’s not just about how much you can get from selling your home. Of course, who your buyer is matters, especially when it comes to closing costs. So what should you know about closing costs when it comes to selling your home to a cash buyer?
What Are Closing Costs?
Closing costs are fees that are paid as a part of the process of closing the deal on a home. They include things like credit check fees, land survey fees, property appraisal fees, attorney fees, loan application and origination fees, title insurance premiums, title service fees, government recordation fees, and transfer taxes. While these fees aren’t calculated based on a certain percentage of the sale price of a home, they often add up to somewhere between 3-4% of the sale price.
What Are Sellers Responsible For?
What closing costs sellers are responsible for depends on what is negotiated between the seller and the buyer. In some sales, the buyer is responsible for 100% of the closing costs. Other sales may see the buyer negotiating for the seller to cover some or even all of the closing costs. Some sellers may even offer to cover closing costs to make their homes more attractive to potential buyers.
Does Selling for Cash Make a Difference?
You may have noticed that some of the closing costs are related to lender services. If there isn’t a lender involved, as is the case when you sell for cash, the closing costs associated with the sale may be lower. There will still be some closing costs that either the buyer or seller (or sometimes both) will be responsible for paying, but things like loan application fees and loan origination fees won’t be part of the deal.
Closing costs can be a pain, especially if they catch you by surprise. That said, you could get away from dealing with them altogether if you sell your home to Minnesota Home Guys. We cover all the closing costs so you don’t have to pay a single cent towards them. It’s just one of the ways we show Minnesota homeowners how much we care about them.
Want to learn more about how selling your home to Minnesota Home Guys works? Click here to learn about the process and how we compare to our competitors today!
