You save for the down payment on a home, but what about those closing costs? How much are they? Do they vary? Can you negotiate? Hannah Donnelly sat down with Todd Denman of Denman Properties at Compass for the answers.
The cost of a house is high enough, but then there are all those extra fees. When it comes to closing costs, there are things you should prepare for, says Todd Denman of Denman Properties at Compass.
- What are closing costs?
Closing costs, according to Denman, consist of three things:
- Actual closing costs
- Prepaids -- anything that comes out of the buyer's pocket
- Escrows -- a deposit or other funds held between the offer and when financing is secured.
More real estate
2. How much are closing costs?
Denman says he tells his buyers in Massachusetts to budget between 1.5% - 2% of the cost of the home.
3. Can costs vary?
Yes, says Denman, in many ways depending on the town, taxes, etc.
For more on how to figure out and plan for closing costs, plus how to negotiate the costs themselves, watch the video above.
