Intro: In one of the last posts for "Ask the Realtor," Boise real estate agent talked a bit about the costs associated with buying a home. In this follow up about home closing costs, Jace goes into more depth about what buyers and sellers can expect when it comes to typical home closing costs -- at least in the Treasure Valley.
One thing you'll definitely notice is that he points out that the closing costs on a home can very much depend on where you live. His answer gives you a general look at what to expect. However, as always, his words are intended to give you some background information about the subject. When you're ready to buy a new home, be sure to contact a qualified Realtor in your area to find out who typically pays for what in your neck of the woods.
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Ask the Realtor:
I've heard conflicting reports about new home closing costs. Who is supposed to pay for them? The buyer. Or the seller?
Sometimes buyers hear that the seller is supposed to pay for your closing costs and that can really mean a couple of different things. However, in the boise area, it is customary that the seller pays for parts of the buyer's closing costs.
Closing Costs on a Home in Boise Broken Down
In our area, it's generally three things, two of which comes from the title company and one of which comes from the lender. From the title company, it's customary that the seller pay for the standard owner's policy title insurance. Also, it's customary that they pay for half of the closing escrow fee. And then from the buyer's lender they a lot of times will pay for the appraisal as well.
Are There Other Closing Costs?
So those things generally add up to 3/4 of a percent to maybe one percent of the purchase price. The buyer's total closing costs normally are estimated at about 3% of the purchase price. So, yes there are other closing costs (the other 2.25%). These would mostly come from the lender in the form of fees (origination fee, underwriting fee, etc) as well as pre-paids (interest, taxes, homeowner's insurance.).
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Jace Stolfo owns Boise Real Estate Plus, LLC. in Boise at Keller Williams Realty. He has been named one of the top real estate agents in the area. This includes being named a Platinum Level Top Producer. His areas of expertise include the Boise, Idaho real estate market (and the surrounding area), REOs and short sales. You can learn more about Jace here.
*Author's note: The purpose of this column is for general information only. As always, if you have specific real estate questions, contact a Realtor in your area.
**Due to a sudden upsweep in Jace Stolfo's schedule, the "Ask the Realtor" column will be on hiatus until a later time.