Washington has always seen a boom in the real estate market. So, if you want to sell your house, this state has been known to provide a significant advantage. However, as you enter the real estate transaction, you must gain complete guidance about the closing costs. This involves various fees and services necessary to complete the sale. But what if you opt for a cash home-buying company like WeBuyHouseAsIs to sell your property? Do you need to pay the closing costs? In most cases, you don’t have to because the reputable home-buying company will pay for the traditional closing costs. In other words, you don’t have to pay the amount. 

What Are Closing Costs?

The fees paid at the end of any real estate transaction are known as closing costs. When the fees are paid, it is a mark that every legal, financial, and administrative aspect has been dealt with properly. The primary elements of this cost include the loan origination fees, title insurance, escrow fees, taxes, and more, which typically range from 2% to 5% of the home’s purchase price. So, if a house is on sale for a $500,000 home, one must pay around $10,000 to $25,000 as closing costs. 

Closing Costs Paid by Sellers/Homeowners:

Sellers bear significant closing costs, which are associated with transferring ownership, and this ensures that the property is being transferred legally. And here are the expected seller-paid costs:

  • Real Estate Agent Commissions: It is the most significant expense for sellers, accounting for around 6% of the house’s sale price. 
  • Title Insurance (Lender’s Policy): This fee guarantees a clear title for the buyer by covering the lender’s policy.
  • Transfer Taxes and Recording Fees: The government-imposed fees are meant to record the change of ownership.
  • Prorated Property Taxes and HOA Fees: This fee is meant for the share of taxes and association fees up until the closing date of the sale is reached.

Are Closing Costs Negotiable?

Closing costs are often negotiable between the buyer and seller. Still, certain conditions apply, such as the seller agreeing to cover a portion of the buyer’s closing costs or splitting the escrow and title insurance fees evenly. Thus, the income is a win-win outcome, as negotiating benefits both parties. 

Safeguard Yourself from Paying Closing Costs by Selling Your Home to a Home Buying Company:

Selling the property to a cash home buyer is beneficial on multiple levels. You save time to sell the house, you save money since you don’t have to spend on repairs, the entire process of listing the property and finding the buyer is not required, and finally, you don’t need to bear the closing costs because the home buying company will do that. 

By now, you are aware of the type of closing costs that the seller/homeowner has to bear when they opt for traditional methods of selling the house. You can avoid this by selling the property to WeBuyHouseAsIs Pierce County. For homeowners already financially strapped, paying the closing cost is nothing short of a severe financial blow. If this can be avoided, it means that the amount they are fetching by selling the property is a complete profit. 

Conclusion

When selling a home, understanding the nuances of closing costs is crucial to making an informed decision. While traditional real estate transactions often require sellers to bear significant costs, selling your property to a cash-buying company like WeBuyHouseAsIs Pierce County offers a hassle-free alternative. Not only do you save time and money by avoiding repairs and the listing process, but you also sidestep the burden of paying closing costs.

Additionally, before selling, consider home improvement projects that can enhance your property’s value and appeal. While these aren’t necessary for cash buyers, they may be beneficial if you opt for the traditional market. Ultimately, choosing the right path depends on your goals, timeline, and financial circumstances.

By evaluating your options carefully, you can make the best decision for your situation while keeping as much profit in your pocket as possible.