If you’ve ever sold a house or considered selling a house you probably have heard the term “closing cost”. Keep reading to learn about the closing cost below.
What Are Closing Costs in Little Rock?
Closing cost are the fees that you will need to pay in order for the property to be closed on. The amount and the types of cost will be different depending on the city, county and state that your property is located. We have put together a comprehensive list of closing cost that may come up:
- Notary fees
- Transfer Costs
- Transfer Taxes
- Appraisal Costs
- Inspection Fees
- Origination Fees
- Recordings Fees
- Title Insurance
- Underwriting Fees
- Bank Fees
- Courier Fees
- Wire Transfer Fees
- Liens against the home will need to be paid to clear the title
- Credit Report Fees
- Administrative Fees
- Attorney Fees, If Applicable
- The balance of your mortgage or loans against the home
- Possibly repairs or pest control if this has previously been agreed upon
- COMMISSIONS (to realtors)!
Which Side of the Transaction Pays?
These days it can typically be negotiated that the buyer will pay the closing cost. On the other side of that, the seller will pay the commissions. The average commission is typically 6% of the sales price.
Its also important to note that the seller will need to pay the property taxes up until the day of closing.
Can You Avoid These Costs As a Seller?
There are ways that you can avoid the cost – most notable by working with direct home buyers like Sunny Day Homes LLC. There are no commissions because house buying companies do not use realtors for their transactions. They will also pay all closing cost and fees to remain competitive.
What about repairs?
Often times, buyers will require an inspection on the home and have their purchase be contingent upon repairs being made. Direct house buyers purchase the property in ‘as-is’ condition and do not require repairs to be made.