Closing costs are part of the costs involved in the process of buying or selling a home, and any buyer or seller going through the process should be aware of this cost, according to Nick Statman. Real estate closing costs are the fees and expenses that the buyer is expected to pay at the end of the contractual buying process. Understanding what closing costs are can be useful for both buyers and sellers to prepare for it and not be caught off guard. 

What are Closing Costs

It comprises several fees that are shared between the buyer and the seller, and which are paid at the end of every transaction. There one may find that they may don't know about. To make a wise choice, you have to check out for some things. According to the expertise of Nick Statman, they include things like:

• Loan origination costs
• Appraisal fees
• Title search fees
• Survey fees
• Deed recording fees
• Transfer taxes
• Attorney fees

The total closing costs can range anywhere from 2 per cent to 5 per cent of the home's purchase price. Closing costs for a $300,000 home can range anywhere between $6,000 and $15,000 for a buyer. However, it is always advisable to check the costs depending on several factors like location, features of the house and many more.

Why Buyers Need to Know

Hence, according to Nicholas Statmansaid, closing cost is very important to the buyers in terms of affordability and planning of their budget when purchasing a home. Closing costs are paid at the time of closing, sometimes in the form of a cashier's check. Staying ready for these costs makes the closing process a success. Closing costs can also be incorporated into the total mortgage amount, which is permitted by most lenders. But buyers should refrain from financing a home at 100% plus all closing costs as this results in a high lifetime cost of interest. One can take expert advice in such matters. So be aware of the things.

Why Sellers Need to Know 

Hitherto, closing costs are mostly borne by the buyers but sellers also have their expenses to meet. It is common for the sellers to contribute to some of the costs, such as the commission for the real estate agent, transfer taxes, legal fees, and/or any unpaid taxes.

Understanding estimated closing costs helps sellers to set the right price for their home. It also assists them to estimate how much of the proceeds they stand to make from the sale. Based on this information, sellers can be able to identify the most appropriate strategies that can enhance the generation of profit from the sale of the home.

Conclusion

According to Nick Statman, these are the usual expenses incurred when a property is sold. Though seemingly very basic, knowledge of these costs is vital in ensuring that buyers and sellers engage in a transfer of ownership of property in a very informed manner. Thus, knowledge of what closing costs involve results in positive and efficient closure and results for all the involved parties.