Thinking about selling your home to a cash buying company in Cleveland Ohio? As you consider this sales strategy you might be asking yourself: “Who pays for closing costs when selling my house to a cash buyer?” Find out the answer to this question by reading on.
Who pays for closing costs when selling my house to a cash buying company?
One of the most frequent questions we receive when talking to potential home sellers is the following (phrased in multiple ways, but all about closing costs):
- “Do I have to pay closing costs?”
- “Who covers the closing costs?”
- “Who pays for closing costs”
- “What are the fees and costs I should expect to pay at closing?”
If you are considering selling to a cash buying company this is an important piece of information because closing costs are expensive!
If you are not familiar with the strategy of selling to a cash home buying learn more about this home sale strategy here: What’s a We Buy Houses for Cash Company and When to Consider One in Cleveland
So what’s the answer? As stated earlier the short answer is that most cash buying companies will pay for traditional closing costs. This means if you are selling your house to a reputable, fair cash buying company you will most likely not have to pay for traditional closing costs.
This obviously brings up another important question:
What are traditional closing costs?
Traditional closing costs are the costs to sell a house that are pretty standard regardless of the conditions or situation of the sale. Depending on the state you live in and the agreements of your contract what you, as the seller are on the hook for might change. However, the following are pretty safe bets for “traditional closing costs” and a cost estimate for each that a seller would pay in Ohio if the buyer is not paying them:
- Settlement/closing fee to title company (~$600)
- Title company title search/title exam fee (~$300)
- Title insurance binder (~$100+)
- Title insurance ($175+)
- Notary fees ($100+)
- Attorney fees (~$100+/-)
- Courier/express delivery fees ($25+)
- Wire fee ($25-35+)
- Recording fees ($40-50)
- HOA transfer fees (for condos)
What does that mean for you, the seller, in terms of increased profit/cost savings?
You can see from the basic list above that you could net (make) about $1500 more when a cash buyer pays the traditional closing costs. Yes, this means you walk away with $1500 more net profit than if you had to pay traditional seller closing costs.
An extra benefit? Knowing you don’t have to pay any traditional closing costs assures you that you won’t have to pay for any of the buyer’s closing costs either. Not to overstate it, but this fact can be a big benefit. Why? Many times in traditional sale the buyer will want you to pay for all of or a portion of their closing costs. Knowing you won’t have to pay the buyer’s closing costs guarantees you a huge savings.
According to an article by Zillow on the costs of traditional closing costs these costs are usually 2-5% of the sale price. To put this into perspective, a realtor charges 5-6% of the home’s sale price for their services. So, if a traditional home buyer requires you to pay a portion or all of their closing costs…its almost like paying TWO realtor commissions. This means you walk away from the closing table with less money if you pay either your closing costs or the buyer’s.
In turn, selling to a cash buying company will save you from paying not only your closing costs but also any buyer’s closing costs.
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Interested in Selling Your House with No Closing Costs?
We want to talk to you. Sesa Properties is a local, trusted cash house buying investor operating in greater Cleveland, OH. As a company we are dedicated to making the selling process as expedient and painless as possible for those who need to sell a house in Cleveland. We buy houses for cash, as-is and aim to make the entire process as fast and easy as possible. If you are ready to find out what we can offer for your house click here to get your confidential, obligation free offer started.