During a home sale, closing costs are part of the real estate transaction. It is important to understand this cost whether you are buying or selling a home, as you should be sure to budget for these additional fees.
What Are Closing Costs?
In addition to the down payment on a home, both the buyer and seller have certain fees they need to pay for the real estate transaction. The closing costs cover different transactions for the buyer and seller. These are paid as part of the home purchase during the closing meeting with attorneys.
During the sale of a home, these fees will go to the lender and to third parties for services like title transfer and inspection. Typically, closing costs are about 3 to 6% of the sale price of the home. The average closing costs in Virginia, including taxes, is about $6,200.
Here’s a breakdown of who pays closing costs in Virginia.
Closing Costs For Buyers
For the buyer, closing costs go to your lender to fund your home loan. They also cover fees such as the appraisal or inspection.
Other fees typically included in closing costs are:
- Application fee
- Credit reporting fees
- Escrow funds
- Homeowners insurance
- Private mortgage insurance
- Property taxes, and more
Closing Costs For Sellers
Seller closing costs in Virginia cover commission for the Real Estate Agent. Other fees included in a seller’s closing costs are transfer tax, title insurance, HOA fees, and more.
Sellers also might agree to pay part of the buyer’s closing costs to make the home purchase more enticing. This is called seller concessions. Sellers can pay a certain percentage of the closing costs to assist the buyer.
Remember to Budget for Closing Costs
Be sure to familiarize yourself with closing costs and the fees that it includes. This will help to make buying and selling a home much easier.
Buying a house is exciting, but the process also can be overwhelming. A qualified real estate agent can help you along your journey.
Contact the team at Denise Ramey Real Estate today.
