Who pays closing costs in a real estate transaction?

The Barr Team First Time Homebuyer Info, Info for Home Buyers, Info for Home Sellers, Info on Real Estate Transactions 0 Comments

In this video Henry Barr explains a bit about closing costs and who is responsible for paying those costs in our Summit County, Colorado real estate market…

Hi, the is Henry from The Barr Team here at ReMax Properties of the Summit in Frisco, Colorado.  Sometimes people ask the question of who pays closing costs. I will try to answer that in that it is usually negotiable, but the customary practice in Summit County is that the Buyer pays their closing cost and Seller pays their closing cost. There is a little bit of confusion in the real estate contract when it says that that amount is split between Buyer and Seller, but that really only talks about how much the title company charges to do the closing, which is about $250-$300 total cost, so we’re only talking a small amount and that’s what that paragraph refers to. As far as the other closing costs those are the customary Buyer/Seller closing costs. The Buyer technically, if it’s a cash deal, has very few closing costs as well as a Seller in a cash deal has very few closing costs. If it’s a loan deal then the Buyer has significantly more closing costs, but most of those are loan closing costs. Traditionally the Sellers closing cost would be a small amount, outside of commission and title insurance, those two are normally, in Colorado, paid by the Seller. Those would be the two big expenses and most everything else is pro-rated. Hope that answers your questions. If you have any questions or concerns about real estate here in Summit County please give us a holler, thank you.