What are Closing Costs Like in Sacramento?

You know the term “closing costs,” but do you know what these real estate fees actually include? While people often speak about the costs in terms of dollar amounts or the percentage of your home’s value, it’s important to go into your closing fully informed — and that means breaking down exactly what’s in your Sacramento closing costs. Check out our closing cost “FAQ” to learn more about what closing costs are all about.

What Are Closing Costs in Sacramento?

Closing costs refer to all of the fees that must be paid at to finalize your real estate transaction. Sometimes, the seller agrees to take on all of these costs as a part of the sale. It’s also common for the buyer and the seller to split closing costs (more on that later). The costs and fees may vary based on the home’s exact location and current laws, etc.  Still, there are some common closing costs that never seem to go anywhere. These include but are not limited to:

  • Notary fees
  • Transfer Costs
  • Transfer Taxes
  • Appraisal Costs
  • Inspection Fees
  • Origination Fees
  • Recordings Fees
  • Title Insurance
  • Underwriting Fees
  • Bank Fees
  • Courier Fees
  • Wire Transfer Fees
  • Liens
  • Credit Report Fees
  • Administrative Fees
  • Attorney Fees
  • Agreed upon repairs or pest control
  • Realtor Commissions

Who’s Paying?

While the buyer will usually pick up a number of these fees, it is important to note that the seller typically pays 100% of the commission. This will be about 6%+ of the final sale price. Other than your mortgage balance (when applicable, of course), the commission is by far the biggest expense when it comes to costs at the closing table. Also of note is that negotiating the other costs during the sale process is becoming increasingly popular. In an effort to lure in more buyers, sellers will sometimes pick up the tab on certain fees or taxes.

As a seller, you will also need to pay your share of the year’s property tax, up until the day of closing. Any HOA fees or other community costs should be prorated and paid at this time as well.

What Are Seller Subsidies?

This is an amount negotiated between the buyer and seller. It is the percentage the seller agrees to pay towards the closing costs. For example, you can offer to put 3k towards closing to help relieve some of the costs for your buyer. Overall, paying these subsidies are often a small price to pay to bring buyers to the table!

Can You Avoid These Costs?

Yes! By working with a direct buyer who will pick up all costs associated with the closing! A direct buyer will not charge you a commission, as they are not an agent. Many times, direct buyers will offer to pick up all costs, which will save you money and hassle at the closing table.

Are Repairs Included?

This is another one that is negotiated between the buyer and the seller. If the home is in need of some obvious repairs, the seller will often take care of these before putting their home on the market. However, if an inspection shows additional repairs are needed, a buyer may make his offer contingent on repairs being made. A buyer and seller can work this out before going to closing.

If you would like to learn more about the selling process or if you have any questions about selling your Sacramento home, send us an email using this form, or give our office a call now! (916) 907-6116

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