Closing costs are typically 5%-10% of the sale price of the property. Both buyers and sellers have costs associated with closing. Depending on market conditions buyers may negotiate for sellers to pay closing costs for both sides of the transaction. For sellers, this cost is usually deducted from the closing proceeds. Buyers must pay their closing costs can sometimes be rolled into their loan depending on the lender and loan type.

Things you may see included in closing costs are:

Pro-rated HOA Dues

Transfer Tax

Prorated Property Tax

Real Estate Agent Commissions*

Escrow, Title, and Attorney’s fees

*On the topic of Real Estate commissions, it is interesting to note that VA buyers are not permitted to pay real estate agent fees or commissions. This is why sellers often benefit from being open to paying the buyers agent fees. They should also structure the contract price to compensate as needed.