When considering options for selling your home, you might find yourself torn between a traditional home sale and a cash home sale. There are many factors to take into account, and these include the closing costs.
What are Closing Costs?
Closing costs are a collection of various fees and other payments that are associated with the sale of your home. These costs will vary based on a number of factors including where you live, local laws, and the fees associated with the company you work with. For example, to transfer the title of your home to someone else, you could pay a large amount of money or it could be free. Before selling your home, you want to make sure you understand what costs are included. The method of selling your home can have an impact on just how much these costs will be.
Closing Costs with a Traditional Buyer
In a typical sale, the seller will always pay more in closing costs than the buyer. These costs are heavily comprised of fees and commissions that are paid to a real estate agent or to a real estate agency as a whole. In fact, the seller will likely be responsible for paying the commission of their real estate agent as well as the real estate agent of the buyer. On top of these fees, you will also be responsible for all other payments and taxes associated with the sale.
Closing Costs with a Cash Buyer
In a cash sale, things will look very different. Overall, the closing costs will vary depending on local laws and taxes. With a cash sale, though, you can expect costs to be lower. You will not have to pay any fees or commissions to a real estate agent. Depending on what you and the buyer decide, you won’t need to pay for inspections to be done. Instead, you will just be responsible for certain taxes, such as those associated with transferring the title of the home, as well as other fees like a homeowners association fee. In a cash sale, there is also more room for negotiation and you can work out a deal with the buyer to split certain fees.
The closing costs for any type of sale are not set in stone by any means. They will vary whether you do a traditional sale or a cash sale. However, it’s worth noting that the costs overall will be lower with a cash sale.
Contact Professional Home Buyers if you are interested in selling.