Closing costs are a normal part of selling a home. Have you ever wondered if there’s something you can do to impact what closing costs you pay? If you sell to a cash buyer, closing costs related to lenders won’t be something you have to deal with. Still, there are plenty of other closing costs involved when selling to a cash buyer you should be aware of.
Title Insurance and Title Search Fees
The hope is that there aren’t any title issues that come up when you’re selling your home. If there are, however, that’s where title insurance comes into play. Title search fees cover the cost of accessing public records to verify that you, the seller, are the legal owner of the property. The title search also discloses things like liens, wills, outstanding mortgages, or deeds that could impact the sale.
An escrow fee is paid to the title company for handling things like the title transfer, paperwork, and the distribution of the funds involved in the transaction. They may also hold the funds for things like homeowners insurance and property taxes. Escrow fees are often set at a percentage of the home’s sale price, though that can change depending on who the company is.
Property Taxes and Homeowners Insurance
Speaking of property taxes and homeowners insurance, these may also be included as a part of closing costs. Property taxes are often prepaid by the seller, so the buyer would likely end up reimbursing the seller for taxes paid at a prorated rate. A year’s worth of homeowners insurance premiums may also be due at the end of the closing process. Again, this responsibility typically falls to the buyer, since they will be the new responsible party as far as caring for the property is concerned.
If you’ve ever sold a home before, you probably know that there are often a handful of costs associated with the process. Many of those costs are lumped together and referred to as closing costs. Regardless of whether the buyer is paying with cash or a mortgage, there will still be closing costs that someone has to pay. That said, Hapa Homebuyers covers all of them. When you sell your home to us, you won’t have to pay a single penny towards closing costs.
Covering closing costs isn’t the only way we stand out. Click here to see how selling your house to Hapa Homebuyers compares to selling your home with a local real estate agent.