Well, it depends. In a traditional sale, there are standards that have been set of who usually pays for what. The buyer will have their set of closing costs, and the seller will have theirs. Typically, when they have real estate agents on the seller side, the seller will pay for those commissions, the seller standard to pay for things like surveys, things like the title policy, other settlement fees. They will have some document prep fees and then an escrow fee and things of that nature.
The buyer will have their own set of closing costs. If they have a lender, they will have all of their lender costs. They’ll also have some document prep fees, attorney’s fees, and probably an escrow or settlement fee on their side as well.
What do we see typically in those situations when you’re using a real estate agent? As the seller, that amount is about 9% to 10% of your sales price. So if you’re just trying to get a ballpark figure of what that’s going to cost you when you go to sell it, just take what you think your sales price would be, 9% to 10% of that. So if it’s a $200,000 house, you’re looking at $18,000, $20,000, typically. Now everything’s negotiable. But when you do a traditional sale and there are real estate agents involved, there is a kind of standard and certain expectations that people are going to be looking for.
Us as investors, when we purchase a property, we will make our offers where we pay all of the closing costs. We do buy direct from the seller. So there aren’t agents involved and we’re paying cash. So we don’t have certain things like the lender’s fees, et cetera.
So how does that work? Basically, there still would be buyer and seller closing costs, but we’ll take the standard seller’s closing costs and we’ll move them all over to our side, so that we’re paying all of the standard closing costs.
Our clients like it. And it makes it much easier for us to say, hey, we can pay you “X” amount of dollars for your house, and then they don’t have to do any calculations. They know what they’re getting. And then all the standard closing costs, we’ll pay for those in addition to the offer for your property.
I hope that helps give you an idea of closing costs, who typically pays for them, and what you can generally expect depending on how you want to sell your property. If we can do anything to help you, please give us a call (210) 201-6644 or through the website, sellmysanantoniohouse.com.