Will I Have Closing Costs When I Sell My Home for Cash?
Paying for closing costs is often one of the dreaded parts of selling your home. Closing costs can quickly become more expensive than you anticipated when you sell your home traditionally. Here are a few helpful details to illustrate the closing costs you can anticipate when you’re selling your home for cash.
Cash Buyer Closing Costs
While cash buyers can save you money in many parts of the home-selling process, they’ll still have some closing costs that you’ll need to pay. Luckily, cash buyer closing costs are much more affordable than traditional closing costs. When you sell to a cash buyer, your closing costs might include property taxes, title work fees, property insurance fees, escrow fees, transfer fees, etc. Cash buyers won’t need you to pay for loan origination fees or mortgage fees because they’ll be paying for your home in cash. The closing costs associated with a cash home sale usually cost around half of the traditional closing costs, if not less.
Cash Home Buying Company Closing Costs
The closing costs of cash home buying companies are fairly similar to those of individual cash buyers. After all, they have most of the same buying processes. However, cash home buying companies don’t use real estate agents when they’re buying homes, which will save you tens of thousands of dollars since you won’t have to pay commission fees. Some cash buyers also won’t work with real estate agents, but it depends on their processes and experience.
Traditional Closing Costs
When you’re selling your home to a traditional home buyer, your closing costs will typically add up to 2% to 6% of your home sale price. These traditional closing costs might include mortgage fees, appraisal fees, attorney fees, escrow account fees, discount points, legal purchase recording fees, loan origination fees, home insurance fees, property taxes, and more. It is becoming more common that traditional home buyers will expect the home seller to cover their closing costs or at least a portion of them. This can also drive up your budget for closing costs. Additionally, if a real estate agent has helped with the sale, you’ll be expected to pay a commission fee, which typically costs 5-6% of the home price, adding up to tens of thousands of dollars.
So, if you’re trying to budget for and anticipate closing costs when you’re selling your home, remember this article. Cash buyers, cash home buying companies, and traditional home buyers all have different closing costs. Selling your house for cash can potentially save you tens of thousands of dollars in closing costs.
Do you want to sell your house without expensive closing costs? Click here to get a cash offer from Metroplex Home Buyers.
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3 min read
June 23, 2022