Closing costs: What exactly are they and how much should you budget for?

Closing costs: What exactly are they and how much should you budget for?

If you are planning on buying a home this year, it is important to plan for any fees or payments you will need to pay at the closing of the transaction, otherwise known as closing costs.

Hi, I’m Tanja Odzak, Our East Bay Home brokered by eXp Realty… and I sell homes in Oakland, Berkeley, and the San Francisco East Bay 

Buying a home can be a very exciting time for you, so it is best practice to know what costs you will be responsible for at the end of the transaction. This way there are no surprises when you go to sign the final documents. According to Bank Rate and I quote, “Closing costs are the fees and expenses you must pay before becoming the legal owner of a house. Closing costs vary depending on the purchase price of the home and how it’s being financed.” 

So, what are some closing costs as a buyer you will need to pay? Typically in a transaction, this can be costs for appraisal, credit reports, lender origination fees, title and underwriting, and notary fees. Closing Costs usually are 2-3% of the total purchase price of the home but can vary depending on the lender. So for example, if you are purchasing a home for $750,000, your closing costs could be around $15,000. 

The good news is everything is negotiable and you may be able to get a credit from the seller to offset some of the costs. That is why it is important to work with an experienced real estate agent who can negotiate the best terms for you. If you would like more information on current market data and the available inventory in the area, reach out to me so I can help you with your search and write the best offer for your next home. 

And if you’re one of those people that needs to SELL and BUY, ask me about my home selling plans where you get to pick which real estate services you want and the fee you pay… Most of the them include my super duper digital marketing that… no one else does in our area. I’m Tanja and I sell homes. I offer simplified and transparent choices!  

I’m a Top Producing Realtor® in the OAKLAND / BERKELEY / EAST BAY AREA. I’ve been in the San Francisco East Bay Area since I came up to do my undergrad at UC Berkeley (a long time ago!), with a short stint at UC Davis while getting my Master’s. I take my duties as a Realtor® and Fiduciary very seriously, I enjoy educating my sellers and buyers along the way. Putting People, Before Profit. 

Why not check out one of my no-obligation, online, On-Demand, virtual Real Estate Seminars?



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