WHAT IS CLOSING COST

Many buyers and sellers wonder what is closing cost? Closing cost are fees and expenses that buyers and sellers incur during the finalization of a real estate transaction at your title office and explained. These cost can include a variety of items such as loan origination fee, charges by the lender for processing the loan. Appraisal fee, cost for assessing the property's market value. Title Insurance protection against potential defects in the title of the property. Home inspection fee, charges for a licensed professional home inspector to inspect home from top to bottom for any property issues. Attorney fees, legal fees for services related to the closing process. Recording fees, charges for recording the sale with the local government. Prepaid taxes and insurance, payments for property taxes and insurance for three months are common that are due before the first mortgage payment.

INFLUENCING FACTORS 

Influencing factors that the seller or buyers may face can vary such as property location. Different states and municipalities have varying regulations and fees associated with property transactions, which can affect closing cost. Purchase price, generally higher priced properties may incur higher closing costs due to increased fees for service like title insurance and appraisal. Lender requirements has different policies that vary regarding fees and services, impacting the overall closing costs. Type of loan, the type of loan can affect your costs. Some loans have specific fees associated with them, such as FHA and VA loans. Negotiations, buyer agent and seller agent can help negotiate who pay certain closing cost other than by law which can shift the financial burden and affect individual amounts.

Prepaid items, cost such as property taxes, survey, homeowners insurance, flood insurance,  and mortgage interest that must be paid upfront can vary based on timing of transaction. Home inspection and appraisal costs associated with these services can vary based on the property size, location and condition. Title search and insurance, the complexity of title search and level of insurance coverage desired can also affect costs. Attorney fees if involved can vary widely based on their experience and complexity of the case. Market conditions in a competitive real estate market, additional costs may arise from expedited services or higher demand for certain professionals.

Be aware these factors can help buyers and sellers better estimate their closing costs and prepare financially for the transaction. Also closing cost typically range from 2% to 5% of the purchase price of the home and can vary by location and specifics of the transaction. It's essential for buyers and sellers to be aware of these costs as they can significantly affect the overall expense of purchasing or selling the property.

Your trusted advisor should give you up front an estimated seller or buyer cost based on price of home.

TRUSTED ADVISOR

As a trusted advisor, professional realtor and retired military veteran I am here to serve you in the Dr. Phillips and Central Florida housing market whether you are selling or purchasing a home. In the absence of trustworthy information whether it's a housing crisis or local housing market, real estate decisions are increasingly driven by fear, uncertainty and doubt. We as trusted advisors drive the real estate community to ensure you are making the right decision.

Part of my job is to keep you informed and educated about the local housing trends, to include common real estate terms and videos. It is important to keep up to date on the housing market, don't get confused by the media, they talk national level, I can provide the most up to date local area data when it comes to make crucial decisions.

So don't let this shifting housing market delay your dreams, data reveal home values typically appreciate over time and that gives your net worth a nice boost. When you are looking for a realtor, look for your realtor with the heart of a teacher. If you are ready to start your journey contact Kevin Strawter today at 850 496-6412 to begin a new walk in homeownership and all your real estate needs. You got the best of the best. Referrals always welcomed.