Real Estate Term of the Day: Closing Costs & Closing Statement
CLOSING COSTS – various fees and expenses payable by the seller and buyer at the time of a real estate closing (Barron’s Dictionary of Real Estate Terms)
CLOSING STATEMENT – an accounting of funds from a real estate sale, made to both the seller and buyer separately. Most states require the closing agent to furnish accurate closing statements to all parties to the transaction (Barron’s Dictionary of Real Estate Terms)
See also: CLOSING, CLOSING AGENT & CLOSING DATE
Typical closing costs in Colorado that would be included in a closing statement are:
- real estate commissions (seller)
- title insurance premium (seller)
- assessments (seller)
- mortgage payoff (seller)
- HOA transfer fee (seller)
- water & sewer escrow (seller)
- taxes (can be both buyer & seller)
- title closing fee (split equally between buyer & seller)
- lender fees including discount points & origination fees (buyer if purchasing with a loan)
- lender title insurance premium (buyer if purchasing with a loan)
- deed recording fees (buyer)
- appraisal fee (buyer)
- tax report (buyer)
- credit report fee (buyer if purchasing with a loan)
- fee for surveys (buyer)
- mortgage insurance premiums (buyer if purchasing with a loan)
- hazard insurance premiums & escrow reserves (buyer if purchasing with a loan)
- loan closing fee (buyer if purchasing with a loan)
- flood certification (buyer if purchasing with a loan)
- HOA working capital (buyer)
- prepaid HOA fees (buyer)
- loan interest (buyer if purchasing with a loan)
- documentary fee (buyer)
Please note that the purchase contract will specifically state who pays most of these fees. Also, it is very common in our current market that the buyer request seller concessions which allows the buyer to receive a credit from the seller to assist with their closing costs. A common estimate for seller closing costs is 3% – 9% of the purchase price. A common estimate for buyer closing costs is 2% – 4% of the purchase price.
LESLIE MONACO REAL ESTATE 