What Are Typical Real Estate Closing Costs?
I get this question all the time, and usually at the time of signing a listing contract or before my buyer wants to submit an offer. I always hate to say, it depends. I usually get that look of “Maybe she doesn’t know what she is doing…” I do. Closing costs can vary by situation, so for myself or any agent to give a client an exact number would be wrong and incorrect. I can however, round the closing cost to a percentage, and even then it all depends on the situation.
For buyers, you will have a higher closing cost due to lender fees that are included with purchasing the home. The lender fees are also tied in with escrow and title fees. Certain banks and lenders require different insurance policies, rates and prices along with different prices for the same fee.
As the seller, your closing costs will be just a bit less, unless the home you are selling was an investment property. That is when you will be taxed, making your final closing cost higher.
The average amount of closing costs that I see with my clients that are selling their home are about 1.5%. For buyers with loans, it is around 2.5%.
The chart below does a great job explaining closing costs.