If you’re planning to buy a house in the Dallas Fort Worth Area and wondering about the closing costs, you’ve come to the right place. Whether you’re selling your house for cash or purchasing one, understanding closing costs is crucial to navigate through the complexities of real estate transactions.
Sell your house for cash or buying a house, the closing cost is an important part of real estate dealings. Closing costs are the extra fees or settlement fees buyers and sellers need to pay to close the deal. Closing costs can become a sticker shock if you fail to calculate them at the beginning itself. The prior calculation will help you find out the exact amount that will be deducted from you after the deal.
Closing costs are usually paid based on the agreement made by sellers and buyers. Usually, buyers need to pay a larger portion of the closing cost compared to sellers. It can range from 2-5% of the total purchase cost.
What Are Included in the Closing Costs?
Before you exclaim “I want to sell my house for cash,” it’s important to comprehend the closing costs. These are additional charges or settlement fees that both buyers and sellers need to pay to finalize the transaction. Ignoring these can lead to unnecessary complications. Typically, buyers are responsible for a larger portion of the closing cost, which can range from 2-5% of the total purchase price.
Included Costs You Should Know
Here’s a rundown of the common fees that both buyers and sellers should be aware of:
1. Agent Commission
Approximately 3% of the total purchase price goes toward agent commissions. This is usually covered by the seller, who may roll this cost into the asking price.
2. Title Fee
Title fees generally consume 2-5% of the total fees and ensure that the owner has maximum rights to the property. It also protects both the buyer and lender from future disputes.
- Title Search Fees
This ensures the property doesn’t have any ownership issues and verifies the seller as the legitimate owner. - Mortgage Insurance
This is required if the buyer is securing a loan for the purchase, protecting the lender against discrepancies. - Homeowner’s Title Insurance
This protects the buyer from issues like forgery or undisclosed heirs and provides long-term security for your investment.
The title search company will search public records to make sure the property is not having any ownership issues, and the seller is the verified owner of the house. Paying the title search company will help you confirm the property value and verify ownership rights.
3. Government Filing & Notary Fees
These are administrative fees for officially becoming the legal owner of the house and ensuring document authenticity.
4. Attorney Fees
Attorneys help review all closing documents, usually costing 2-4% of the total purchase.
5. Property Tax
Six months of advance tax is due at closing, and how it’s divided between buyer and seller can vary based on the contract.
And that’s not the end of it; there might be other miscellaneous fees like courier fees, pest inspection fees, appraisal fees, etc.
Simplifying Your Real Estate Transaction with Intense Properties
Concerned about closing costs? Intense Properties can help. We buy houses for cash in the Dallas Fort Worth Area, taking the hassle out of the equation. Our professional team handles everything from home inspections to finalizing the deal, ensuring a smooth transaction. So don’t hesitate—reach out to us and make your real estate dreams a reality.
