Real Estate Closing Costs: Explained

What are closing costs in real estate? The closing costs are the accumulated fees that are paid for at the end of the real estate transaction. These fees accrue throughout the transaction and account for inspections, insurance, taxes, and more.

Closing costs are typically paid for by the home buyer, since they are the one using the services that accrue the costs. For example, if the the home buyer needs an inspection done on the property, they will hire a home inspector. The fees for the home inspector will be added to the closing costs.

Closing costs is a term used to describe the summation of all the fees throughout the transaction. So, why is it important that we categorize these fees as "closing costs?" Categorizing the closing costs helps us see how much additional money the home seller is spending on the real estate purchase. The closing costs can, sometimes, be a lot of money. Therefore, the home seller and home buyer can work together to negotiate the best means of paying the closing costs.

Real estate agents can help the home buyer and home seller reach an agreement to help the home buyer afford the additional costs needed to purchase the real estate. For example, the home seller can lower the real estate price to compensate for the accrued closing cost to incentive the home buyer to purchase the property. By doing so, they assure the property is sold, therefore fairly assuring they receive their profit earned from the transaction.

In this video, Robert Rico goes tells you everything you need to know about closing costs during the real estate transaction.

Learn even more about closing costs by reading the article: https://www.carealtytraining.com/real...

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