Closing day is quickly coming, and you can't wait to get your hands on that sizable check. But despite your joy, keep in mind that you'll need to pay some upfront money for closing costs before the sale is finalized. Closing costs are fees that must be paid on or before the closing day for your home sale to be concluded.
The following list includes some of the most typical costs so you can have a general idea of what to anticipate. These costs are simply estimates, subject to regional variation, and subject to frequent changes that might not be represented here.
This cost includes your agent’s research, marketing, consultation services, and a commission for the buyer’s real estate agent (the seller pays both!). Although they could be negotiated, commission fees are typically around 5% of the home’s sale price.
When you are a part of such a significant financial transaction, you want to be sure that you are protected. Your attorney will ensure that you have fulfilled your legal obligations and that the buyer has complied with all conditions set forth in the Offer to Purchase for the transaction to close. The overall cost is based on the scope of the services rendered and the wide range of legal expenses. Disbursements will also fall under your jurisdiction (any fees related to handling your files, such as long-distance calls and travel).
This could not be a cost for you, depending on when you pay your utilities and property taxes. If you prepay these costs, you can anticipate the buyer to reimburse you for the difference by closing day. However, if you don’t cover these costs upfront, the buyer will be responsible for paying you for the sum incurred before the date of possession, and your attorney will determine the exact sum.
Be aware that your bank may charge you a fee for closing your account and a penalty fee if you paid off your mortgage early if you intend to use the profits.
Also, pay attention to your brand-new home. Set aside additional money for moving-related costs (such as the moving company and utility installation).
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Bukki Solanke
Bukki Solanke, your trusted Real Estate Agent have been a real estate professional for nearly two decades. A realtor in Winnipeg, Manitoba, with Maximum Realty, I help individuals, families, and businesses achieve their real estate goals in Winnipeg, Manitoba. Readmore