After would-be buyers scrounge up a down payment, secure financing, and negotiate a winning offer, many are left with sticker shock following the announcement of closing costs, a not-so-tiny detail amongst real estate trends of ever-climbing costs in property purchases.
All things being equal – closing costs are not
Overall, closing costs tend to run between 3% and 6% of purchase price. However given the cost of home appraisals, credit reports, attorney and numerous other fees, not to mention highly-variable title and homeowner’s insurance, buyers can find hundreds of dollars in difference between lenders – so regardless of state, it pays to shop around.
What states stick-it to home buyers the most?
Given a $200,000 home, a 20% down payment, and excellent credit, let’s take a look at real estate trends involving closing cost quotes from these top-5 notoriously expensive states…
The highest average closing costs in the nation at $2,655. (Which in reality is infinitely more painful, as the island-state’s median listing price is in the $510,000 range.)
• New York
An average $2,560 in closing costs. (Average median home price $720,000 – yowsa!)
• North Carolina
Averaging $2,409 in closing costs. (Average median home price $144,600. Whew.)
Averaging $ 2,358 in closing costs. (Average median home price, $211,700. Not too shabby.)
• South Carolina
Averaging $2,322 in closing costs. (Average median home price, $139,500. A bargain!)
A helping hand
Keeping an ear out (or researching) lenders in your area (and online) with the lowest closing costs to pass on to buyers is in your best interest. Help them understand what costs include, so last minute budget-busters don’t sink sales. Also help them understand that in this market, it’s unlikely closing costs will be covered by sellers, who often have many other interested buyers.
Don’t let the latest real estate trends put a squeeze on your sales. Find the help you need to stay on top, only with Properties Online.