Navigating the real estate market can be a complex process, particularly when it comes to understanding the various costs associated with buying or selling a property. We aim to help you understand what they are, what they cover, and how they can impact your real estate transaction.
Closing costs are the fees and expenses incurred during the finalization of a real estate transaction. These costs are separate from the property's purchase price and are paid at the closing of the sale, which is when the title of the property is transferred from the seller to the buyer. Closing costs can include a variety of fees, such as loan origination fees, title insurance, escrow fees, and more. Plan to set aside approximately 2% to 5% of the home's purchase price for closing costs. This range can vary depending on local real estate practices, so be sure to adjust it based on guidance from your real estate agent or lender.
In Tennessee, both buyers and sellers can be responsible for different portions of the closing costs. Typically, buyers pay for costs associated with obtaining a mortgage, such as loan origination fees, appraisal fees, and title insurance for the lender. Sellers, on the other hand, often cover the costs of the real estate agent's commission and any agreed-upon repairs.
It’s important to note that closing costs are negotiable. During the negotiation process, buyers and sellers can agree to share or shift certain costs to make the transaction more favorable for both parties. Our Founder and Team Lead, Katie Morrell, thrives on the negotiation process. When it’s time to finalize a deal, having her on your side is a tremendous advantage.
Understanding closing costs is crucial for anyone involved in a real estate transaction in Tennessee. By familiarizing yourself with the various fees and expenses, you can better prepare for the financial aspects of buying or selling a property. Always consult with your real estate agent or attorney to get a clear picture of your specific closing costs and how to manage them effectively.
At Morrell Property Collective, we're dedicated to ensuring your real estate experience is as smooth and informed as possible. Contact us today for expert guidance on your next property transaction.
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