WAV Group has always had a warm feeling about Closing Corp. Closing Corp built a center of excellence around helping consumers understand the closing costs of a transaction. I have always believed that estimated closing costs would be a game changer on consumer-facing websites – a major differentiator for real estate brokers. Unfortunately, Closing Corp focused on providing the information to loan officers rather than providing an API that can be used in consumer applications to estimate closing costs.
Given that these costs are often 6% to 8% of the transaction, I think that this is important for buyers to know. Depending on the transaction – or simply the area of the country – the fees are either paid by one party or shared between the buyer and the seller. Zillow published a pretty comprehensive overview of how the fees are handled here.
Buyer closing costs: As a buyer, you can expect to pay 2% to 5% of the purchase price in closing costs, most of which goes to lender-related fees at closing.
Seller closing costs: Closing costs for sellers can reach 8% to 10% of the sale price of the home. It is higher than the buyer’s closing costs because the seller typically pays both the listing and buyer’s agent’s commission — around 6% of the sale in total. Fees and taxes for the seller are an additional 2% to 4% of the sale. However, seller closing costs are deducted from the proceeds of the sale of the home at closing, so you rarely need to bring cash to closing.
According to Zillow research, 61% of sellers are first-time sellers, and the closing process can be confusing. Read on for our guide to seller closing costs.
I would love to see Closing Corp integrated into Matrix and One Home, among other platforms that agents use to provide information to homebuyers and sellers.
Today, Closing Corp’s software is used by the majority of the nation’s top 25 lenders. The closing fees include transfer tax, title insurance, pro-rated property taxes, HOA fees, seller attorney’s fees, recording data, service fees, escrow fees, lender business rules and requirements all into one platform. It allows loan officers to receive actual fees, not estimates – and order services.
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