Buying a new home is a huge decision – how often do you make a purchase with that many zeros?! And while our experienced real estate professionals will guide you smoothly through the home-buying process, potential buyers should go into the house hunt considering all the expenses they can be expected to cover beyond the home’s purchase price. Please note that all costs are estimations.

Closing Costs

Closing costs are very detailed and determined on an individual basis, so there’s no one-price-fits-all. Some of the fees that may be included in closing costs are the appraisal cost, title search fee, title insurance premium, closing fee and loan underwriting and origination fees. The buyer, the seller or a combination of the two may pay closing costs. The total can range from thousands to hundreds of thousands of dollars. Buyers can expect to pay an average of 2 to 5 percent of the purchase price in closing costs, with the higher range being for financed purchases. That means if you’re purchasing a home for $250,000, you can expect to pay between $5,000 and $12,500. It’s crucial to have the amount and responsibility clearly delineated in the purchase agreement – lenders must give you a document called a Closing Disclosure at least three business days before your closing date. There are a number of closing cost calculators available online, but take them with a grain of salt and consult a professional.

Appraisal Fee

These professional services will appraise the home and estimate its true market value. This service usually costs between $200 and $500.

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