If you were ever in a situation where closing fees for a real estate transaction didn’t seem to add up, you are not alone.
When buyers and sellers enter into a sales agreement, they have an understanding of the different costs associated with closing the deal. There are times, however, where things just don’t seem to add up. What should buyers and sellers look for when closing a transaction?
The Difference Between Buyer and Seller Fees
Buyers and sellers can pay similar closing costs, but there are also different closing fees depending on what side of the transaction you find yourself on. Buyers and sellers can pay title and escrow fees, but each party has additional fees that are unique to their situation. The person purchasing a property normally absorbs mortgage fees, while the seller may pay the commissions of agents. There are also situations where the seller will agree to pay all or a portion of the buyer’s costs, so the terms of every deal can be different. The uniqueness of each situation can sometimes cause confusion in the final closing costs, so it’s important to work with a trusted service that can help you fully understand the entire process from start to finish.
When Fees Don’t Add Up
If there is a lull in the closing procedures, this is one of the biggest reasons why closing fees may not add up as you envisioned. Your initial estimate may differ from the current closing costs if there are setbacks to the transaction, and additional property taxes and rising interest rates could increase the closing fees. Both sides may see increased fees during any setbacks, so stay in the loop with the ins and outs of your transaction.
Understanding Closing Fees
Real estate transactions are no walk in the park, so don’t be afraid to ask your agent or broker any questions about any part of the process. You’ll have a better piece of mind with the more you understand about the transaction, and you won’t be thrown for any loops if you work closely with your broker or agent.
Real Estate Settlement Services from Colony Title Associates
Colony Title has been in business since 1995 and handles more than 2,000 real estate closings per year. If you have any questions or would like to speak to a representative about closing, please give us a call at 410-884-1160 or visit our website for more information.
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