If you’re looking at 1-3% of this price, you should expect to pay between $3,440 and $10,320. A portion of these fees are paid in escrow and again paid each year. You can get the same stellar service from a licensed real estate agent and save as much as 50% on commission. But be prepared to pay out of pocket if your equity is low. These fees typically consist of the lender’s title, owner’s title, appraisals, settlement fees, recording fees, land surveys and transfer tax. Any applicable fees must also be paid at closing. Let’s breakdown some common closing costs that may be included in your transaction. Home buyers who register on the website will receive daily email updates on new listed homes for sale in Utah. Clever’s Concierge Team can help you compare local agents and negotiate better rates. If you are getting a loan, there are additional costs related to the cost of borrowing money. By offering to cover the buyer’s closing costs you can incentivize buyers to prioritize your home over another. Buyers will usually request one to protect themselves to know what problems they will inherit with the home. The seller typically pays for this as it protects them from being liable for the breakdown of any appliances soon after the transfer. An inspection lets buyers (and possible their lender) know if there are problems with the house. What Is the Different Closing Costs for Buyers vs Sellers? On a national level, this is also more expensive than much of the country. Understand how mortgage works to avoid losses from your investment, information about the mortgage update. Home Sellers Closing Costs Calculator Buying a House? Closing costs for sellers of real estate vary according to where you live, but as the seller you can expect to pay anywhere from 6% to 10% of the home's sales price in closing costs at settlement. If the buyer defaults on the loan, the lender wants a valid asset they can seize and sell to recoup their investment. With over 15 years experience selling residential real estate, please call Scott Rozier at 801-471-9443, 1145 South 800 East Suite 101 Orem, Utah 84097, 1201 E Cottonwood Hills Dr. Sandy, Utah 84094. Nope. These costs can include: This might seem like a silly question. Sometimes the uncertainty surrounding how much you’ll have to pay causes a bit of anxiety. In general, buyers should expect … Moreover, these costs fluctuate depending on which state the seller lives in and are heavily influenced by local regulations and laws. The usual average real estate broker commission can cost around 3 to 5% of your total home’s sales price. There are also recurring closing costs such as pre-paid property taxes & pre-paid insurance and interest. Property taxes fall due annually or if they’re less than $100,000, semiannually, on … Of course, closing costs for a home sale in Utah are not the only expense you need to worry about. Typically, closing costs run about 3% to 6% of the purchase price, with the exact amount depending on the size of the loan and the local tax laws. Please note these are estimates and the final costs should be determined by your title company escrow agent. Some loans have penalties for paying the mortgage off early. Closing costs are divided between the seller and the buyer with each being typically responsible for certain costs. Your information will not be given to 3rd parties. What Are Closing Costs? To incentivize you they offer an added $15,000 to the sale price while asking for $12,000 in closing costs. While most homeowners look forward to the profit from their home sale, it is actually quite an expensive endeavor. Remember that this is in addition to the 5-6% you’ll have to pay in agent commission (if you go the full-price route). One of the best and easiest ways to reduce the costs due at closing is by using a discount agent. All lenders very in the closing costs they charge and by comparing lender fees in addition to interest rates, you can often save hundreds and even thousands of dollars in closing costs. Check out this handy calculator to find out the average commission seller’s pay in Utah. Some homeowner’s associations in Utah get in on the action. competition) keeps you from enjoying the number of prospective buyers that you would like. The only closing costs the buyer must pay are the title Settlement Fee of $350 and the recording fee of $20. Overall the total closing costs are less than 3% of the amount borrowed. Title Insurance – … This is also used to determine that the seller is actually the legal owner of the property. If the seller agrees to pay $9,000 of the buyer's closing costs but the buyer only need $6000 the buyer looses out on $3,000 that could have been used to negotiate a reduction in the purchase price. More on buyer closing costs later. The HOA may charge their own transfer fee, which can be quite hefty — up to 1%. For a more detailed estimate specific to your transaction, please contact us. You've found your dream home, the seller has accepted your offer, your loan has been approved and you're eager to move into your new home. Here are the typical sellers closing costs in Colorado. It is especially common with FHA or similar type financing. When the sellers pay part or all of the buyer's closing costs it allows the buyer to purchase the home with less out of pocket expenses. Instead of paying up to 6% in commissions (3% to the listing agent and 3% to the buyer’s agent), by connecting with Clever, you can find a top agent who will sell your Utah home for $3,000 or 1% if your home sells for more than $350,000. The buyer may also choose to add prepaid interest or discount points that must be paid at closing. But before you get the key, there's one more step--the closing. Outside of asking the buyer to pay for closing costs there are a few ways to reduce your closing costs when purchasing a home. Reach out to learn how much you can save when selling your home. However, there is a tax bill in the works that, if passed, will add a blanket 0.075% transfer tax to all residential and commercial real estate deals. Also called the settlement, the closing is the process of passing ownership of property from seller to buyer. Throughout Utah it is very common to ask the sellers to pay part or all of the buyers closing costs when making an offer. Remember that this is in addition to the 5-6% you’ll have to pay in agent commission (if you go the full-price route). The most significant of all the closing costs, the real estate/brokerage commission, is one of these. The cost basis of the home is typically the price the home was purchased for, however major home additions can increase the cost basis of the house. Most loans include an application and origination fee. As the seller, your closing costs will mostly include real estate commissions and the transferring of the deed to your home while the buyer will mainly covers closing costs associated with their mortgage . ... Part of the closing costs for a seller in California is city and county transfer taxes. From the home inspector to the appraiser to the recorder at the county clerk’s office, there are many people who will have a role to play in your transaction. Clever’s Concierge Team can help you compare local agents and find the best expert for your search. The average closing costs for sellers range between 8% to 10% of the final sale price once all is said and done, so it’s important to factor these funds into your overall moving budget. Buyer closing costs: As a buyer, you can expect to pay 2% to 5% of the purchase price in closing costs, most of which goes to lender-related fees at closing. For example, in Utah County, there is a $40 standard document recording fee. Save at closing by reducing commission with a discount agent. Closing cost stats in Utah Across the state, the average home sells for between $300,000 and $400,000. Sellers pay the transfer tax. The lender often requires a survey of the property boundaries. It is different from homeowner’s insurance that only covers damages from disasters and not normal use. Apply; If you were getting a loan for $300,000 the amount of the total closing costs should not be more than $9,000. However, that also comes with the cost of their commission. The running costs of the property will be prorated and the seller must pay everything up to the close date. When the sellers pay part or all of the buyer's closing costs it allows the buyer to purchase the home with less out of pocket expenses. We’ll also include a range of prices though remember that your actual cost could be higher or lower. However, this does not include all the fees you’ll be responsible for and is a bit of a lowball because of this. A title search is conducted to ensure that there are no outstanding liens or judgments against the property in question. Download my Seller’s Closing Costs Sample that lists both the closing costs and the amount you should expect to pay for each item, based on the sales price of your home. In most cases, closing costs for Washington home buyers equal between 1% and 3% of the home’s total purchase price. What Are The Closing Costs To Sell A Utah Home? The Seller will likely want a higher sale price to compensate for this, but as long as the home appraises for the agreed to purchase price, the closing costs can be negotiated in. Why would you want to pay the buyer’s closing costs? The home appraisal is required if the buyer is financing the purchase. Their time and effort are valuable, hence the closing costs that come along with real estate transactions. So, we prepared a list of two of the most popular closing costs paid by sellers … Combined, the buyers and sellers of real estate in Utah pay $2,817 in taxes at closing. That being said, there are a few costs that are typically paid by either the seller or the buyer. If you have enough equity, that money will simply be deducted from your profits. Add to that the typical 6% real estate agent commission and you’ll easily have to fork over several thousand dollars. Do you have to pay this amount? Transfer taxes also vary according to the local government. Sellers should factor in about 5-6% of your home’s value for this cost to pay for both their agent’s and the buyer’s agent’s commission. Join Clever’s network. There are non recurring closing costs such as escrow fees & loan fees. Users have the ability to opt-out of these email if they choose. Please remember these are only estimates. Unlike buyers, sellers are usually on the hook for real estate agent commissions and title insurance.