Who Pays For Closing Costs?

When you buy a home in Moses Lake, you will pay approximately 2.5% to 3% of the sales price in closing costs. These closing costs include excise tax, title insurance, a loan origination fee (around 1% of the sales price) if you are getting a loan, recording fee of $42, which are most of the closing costs.

When you sell a home in Moses Lake, you will pay approximately 2.5% to 3% of the sales price in closing costs too. However, you will also pay commission when you use the services of a real estate agent. Sometimes, sellers prefer to sell on their own, but if you've never sold a home on your own before, be sure to do your homework on the legal forms that are required before you do this. Now, of course, I love helping people sell their homes, and I know how hard I work for my clients, so naturally I would recommend that you use my services. If you think you could save money by selling it yourself, it turns out that statistically, sellers who hire a real estate agent usually get a better sales price than if they didn't, but that's another topic.

Now, what if you want to be nice and just sell your home to a friend, and set the purchase price at the same amount that you paid for it 10 years ago, plus have them pay for the new vinyl windows and fencing? So, the purchase price would equal the original purchase price plus windows and fencing. So, you you want to walk away from the closing table with the exact amount that you put into it. At that point, which is rather unusual for a seller to do, but can be do-able, you would ask the buyer to pay for all your closing costs so you can do that.

What would the process be?

You let the buyer know what the purchase price is, then ask them to pay your closing costs. Assuming, and you should NEVER assume, that your house has gone up in value, their lender's appraisal should come in at the purchase price plus your closing costs. If not, you'll have to settle for the amount of the appraisal, but help them write up the offer for the amounts added together, and explain to their lender what the two of you are planning to do. See if that works out.

Happy selling!

Connie Suehiro, Realtor (r)

Gary Mann Real Estate

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Quote of the day: Do unto others as you would have them do unto you.

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Are you or your kids into doing crafty projects? Join us at Midway Elementary on Thursdays at 4:00 p.m. for the local, weekly 4-H meeting. Lynn is a GREAT teacher who is VERY patient with the kids. This Thursday we are going to tie-dye a pillowcase!