Are you buying a home with cash or selling a home to a cash buyer? If so, you may be wondering “How much will closing costs be?” or perhaps you aren’t quite sure what closing costs even entail. While selling a home to a cash buyer or buying a home in cash will eliminate the many headaches that usually accompany selling or buying a home you will still need to address closing costs and determine who will pay for what. If any of this resonates with you then keep reading because we will explain what all is considered when calculating the closing cost total.
What Fees Are Included in Closing Costs?
There are numerous fees that are included in closing costs so to simplify it for you, we have broken it down into a succinct list:
- Earnest money deposit – an earnest money deposit is normally 1-3% of the purchase price of the home and shows the seller the buyer’s good faith and commitment to purchasing the home. Usually, the earnest money deposit is held in a trust or escrow account.
- Appraisal – an appraisal can cost between $300 – $400. Appraisals are necessary in order for the buyer to know the market value of the home being purchased. When conducting a home appraisal, the appraiser will walk through the interior and exterior of the home in order to determine the condition and value of the home.
- Home inspection – the cost of a home inspection can vary from anywhere between $200 – $800. During a home inspection, the inspector will examine the condition of the physical structure and systems of a house. This can include: plumbing, electrical, heating/cooling systems, the roof, attic, walls, ceilings, floors, windows, doors, foundation, basement, and structural components.
- Title insurance – usually costing around $1,000 dependent on the value of your home, title insurance is a policy that will protect your investment as long as you own the property.
- Title search fee – it is critical to perform a title search before purchasing a home to ensure that the seller has a legal right to sell the home and that there are no liens, mortgages, or property line issues. Title searches are typically between $75 – $250 dependent on who executes the search. Keep in mind that you can sometimes sell your home even if you have a lien on your property.
- Survey fee – a survey is necessary in order to determine precisely where the property lines are for the home that is being sold. Surveys are completed by a licensed surveyor and normally cost between $600 – $900.
- Escrow fees – also known as a closing fee, escrow fees are determined by the company you use for closing and the size/value of the property being sold. This fee is paid to the title company, attorney, or escrow company that is used to perform the closing of the sale.
- Notary fees – it is essential to have a licensed notary public witness the documents that are signed during the purchase of a home. Typically, notary fees can cost around $100 but be sure to check with your title or escrow office because they may waive the notary fee.
- Attorney fees – while hiring an attorney is not required in Florida, it may be in your best interest to hire a lawyer in order to protect both the buyer and seller’s interests. Should you decide to hire a lawyer, you can anticipate paying between $500 – $1,500 dependent on what the attorney charges.
As you can see, there are a lot of fees that are oftentimes overlooked but are necessary when buying or selling a home. Luckily some additional fees are eliminated when selling or purchasing a home with cash. Keep reading because we dive into those next!
Closing Costs Eliminated When a Home Is Purchased with Cash
Fortunately, you have decided to sell your home to a cash buyer so there are some fees that are no longer applicable to you. Those fees include:
- Brokerage commission
- Real estate commission
- Mortgage application fees
- Mortgage Points
- And more
Additionally, dependent on if you are selling your home to a buy for cash company you may be able to avoid most of these closing costs all together! Selling your home to Lemon Houses you will be able to sell your house fast without a home inspection, closing costs, and realtor commissions. Contact us today if you want to expedite your home selling process and get cash in your pocket within one week!