What Are Closing Costs?
Closing costs are the additional expenses incurred in a real estate transaction. These go beyond that of the home sale price. Some states have laws that outline specific requirements for home sales, like insurance or attorney services. There are further options that some buyers and sellers elect to include in the transaction, as well. All of these items pile additional costs to the sale price of the house, that must be paid to complete the transaction. Typically, both buyers and sellers are responsible for their respective fees—though these can be sometimes negotiated.Who Pays Closing Costs?
Generally speaking, both buyers and sellers pay closing costs in a real estate transaction. With that said, there are some situations in which this can be negotiated. One party may request the other party to cover their own closing costs, as a condition of the sale. So long as both parties agree and sign the dotted line, one party may walk away without closing costs. Other than that, sellers are responsible for their own closing fees. But luckily—there is another option. For sellers located in Texas, there is a great opportunity to sell your home quickly with no fees required. But first—let’s dive into exactly what these costs are made up of.What’s Included in Closing Costs?
Exact closing costs will vary by transaction. Generally speaking, one of the biggest costs is title and escrow fees. These include things like:- Transfer taxes
- Title insurance
- Notary fees
- Home warranty
- Prorated property taxes
- Brokerage administrative fees (if applicable)
- Pest or septic inspection
- Prorated HOA fees (if required)
- Attorney fees
- Title insurance
- Inspection fees
- Earnest money
- Real estate administrative fees (if applicable)
- Credit report fee
- Attorney fees
- Deed recording fees