November 15 2016
After would-be buyers scrounge up a down payment, secure financing, and negotiate a winning offer, many are left with sticker shock following the announcement of closing costs—a not-so-tiny detail amongst real estate trends of ever-climbing costs in property purchases.
Overall, closing costs tend to run between 3 percent and 6 percent of purchase price. However, given the cost of home appraisals, credit reports, attorney and numerous other fees, not to mention highly-variable title and homeowner's insurance, buyers can find hundreds of dollars in difference between lenders. So, regardless of state, it pays to shop around.
Given a $200,000 home, a 20 percent down payment and excellent credit, let's take a look at real estate trends involving closing cost quotes from these top five notoriously expensive states:
A helping hand
Keeping an ear out (or researching) lenders in your area (and online) with the lowest closing costs to pass on to buyers is in your best interest. Help them understand what costs include, so last minute budget busters don't sink sales. Also help them understand that, in this market, it's unlikely closing costs will be covered by sellers, who often have many other interested buyers.
To view the original article, visit the Properties Online blog.