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What are the typical closing costs?
This is a great question. This is an are for real estate transactions that has become complicated over the years. There are charges that you just see without knowing what it's for.
These are usually handled by lawyers, but it's worth knowing. Let's break it down and understand the closing costs in this video.
You can also visit our website for more information at: https://www.effortlesshomebuyers.com/
Fernando O. Angelucci is Founder and President of Titan Wealth Group. He also leads the firm’s finance and acquisitions departments. Fernando Angelucci and Steven Wear founded Titan Wealth Group in 2015, and under his leadership, the firm’s revenue has grown over 100% year over year. Today,
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So what are Typical Closing Costs when it comes to a real estate transaction? This is a area that for some reason have gotten complicated over the years, you see a lot of these charges where you don't really know what they mean. And usually the attorneys are the ones that handle and just say, Hey, sign here. So let's break these down. So the very first charge that you're going to see on the let's start with this, you know, there's title charges, there's, closing costs on both sides, seller side and buyer side. So let's start with the seller side. In a typical transaction, the very first charge you're gonna see on a seller's closing cost statement is title costs. Now, what this means is that in the United States, when you sell a property, usually sell it with what's called title insurance. That means that when the buyer takes the property, they are protected in case someone comes out of the woodwork, you know, 10 years later and says, well, I actually inherited this property on this unrecorded will, so this property is actually mine.
What the title insurance will do is then, pay the buyer because they were unable to find that unrecorded mortgage, and when we pay for the title insurance that is now covering our title in case somebody comes out of nowhere. Another fee that you'll see is what's called a commitment update, a commitment update is just the title company charging another fee for their work, it helps them update any title from previous owners. You're gonna see things like delivery fees, document recording fees, tax payment fees for the title company. They have to pay your taxes for you, your property taxes that were due on the property. Title indemnity, wire transfer fees, a closing protection letter for a lender, if they're involved in a new transaction. You usually see an attorney fee as well from anywhere between 500 to $1,500, there'll be registration fees, there'll be recording fees, and usually there'll be a survey fee.
Now, when you sell to an investor, usually the investor is also gonna have buyer side closing costs, so those buyers side closing costs are similar with a few tweaks, so there's going to be an escrow or a closing fee it's like the buyer's version of title. There's usually gonna be a lender's title insurance policy, there's going to be what's called endorsements, in case the property has unique characteristics. There's gonna be a chain of title fee, policy update fee, overnight delivery fee, email delivery fee, recording fees, policy registration fee, and then also attorney fees. So there's a ton of closing costs on both sides on a, say a hundred thousand dollar sales price, you can expect anywhere from 3 to $5,000 of closing costs on both sides, so a total of anywhere between 6,000 to $10,000 just to sell the property.
The nice thing about working with investors is usually the investors will pay for all of the closing costs, so you as a seller will not have to pay for any of that. This is one of the advantages of going with an investor, going with a company like Effortless Home Buyers, because we'll cover not only all of the closing costs we'll cover all the attorney fees, and we'll also make sure that we are handling all of the logistics of getting the attorneys in contact with a title company, getting the title company to close on time with all the things that they need.
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