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Tait Zimmerman
(907) 519-0043
tait@advantagealaska.com
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Closing costs…

Closing costs…

A common question I get from both buyers and sellers is, “How much will my closing costs be?”

For buyers, I’d highly recommend talking to an experienced lender. As part of the prequalification process, you should receive a loan estimate showing what your closing costs will be. That varies, depending on your situation and goals, the loan program, etc.; but typically buyer closing costs are roughly 2-3% of the sales price. This generally will include one-time closing costs and prepaids.

Closing costs are the fees that go to the various parties that help process the transaction – lender, title company, etc. (Real estate brokerage fees are typically paid by the seller.)

Prepaids cover expenses that need to be prepaid at closing, such as property taxes, homeowner’s insurance, and mortgage interest.

Buyers can, and often do, ask the seller to pay some or all of the closing costs, minimizing out-of-pocket expenses at closing time. Keep in mind that you’re effectively reducing your offer by the amount of closing costs you are requesting the seller to pay. So, if the home is listed at $200,000 and you submit a full price offer that includes the seller paying $6,000 of your closing costs, the seller will view that as an offer of $194,000. Also, keep in mind that while interest rates are still low, financing your closing costs does cost you in the long run over the life of the mortgage. With that said, many people would rather pay a marginal amount more per month in order to keep money in their pocket now.

What do closing costs look like for sellers?  Your actual closing costs will also vary, but should be about 1.5%-2% of the sales price, depending on various factors. Your closing costs include your share of title expenses, doc prep fees, appraisal, recording fee, survey update, well/septic testing, etc. This does not include real estate commissions or any closing costs you may pay on behalf of the buyer. I usually suggest that sellers don’t get so hung up on being asked to pay buyer closing costs that they lose sight of their bottom line. Subtract any requested buyer closing costs from the offer amount, and that’s effectively your offer.

Anyways, hopefully this is helpful, and I’m happy to discuss it further if you have questions!

Happy Monday!

Tait Z.

Tait Zimmerman
Advantage Alaska/Discover Alaska Real Estate
www.AdvantageAlaska.com
907-519-0043
tait@advantagealaska.com

“Your home sold in 90 days, or I’ll sell it for free!”
(Reasonable terms and conditions apply)

Posted in: Buyers, Sellers

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What Our Clients Say

Awesome helping Chris sell his home! 100% of asking price in 4 days on the market!!

Chris

June 1, 2023

So cool helping Jacob and Meghan buy their home 5 years ago and now sell it in 4 days for 103% of asking price! Congratulations!! 🎉🏠

April 23, 2023

Loved helping Hugh and Linda sell their home so they can move on to the next adventure! Sold in 27 days!!

April 23, 2023

Wonderful helping Mike sell his home in Peters Creek! As much as I don’t like challenges during a transaction, they certainly make getting awesome feedback from a seller at the finish line that much more rewarding!!

Mike April 4, 2023

Sold in 106 days on the market (average for commercial that sells in this price range in Anchorage is 136)! Let me know if you'd like to buy or sell in the Anchorage/Mat-Su Valley areas!!

6239 B Street February 4, 2023

Awesome helping Bridgett buy and sell for the second time, in addition to helping several of her family members purchase homes recently! Congratulations!! 🏠 🔑 🎉

Bridgett January 2, 2023

Advantage Alaska Real Estate

Discover Alaska Real Estate

1330 E Bogard Rd., Wasilla, AK 99654

(907) 519-0043
tait@advantagealaska.com


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