Boston real estate and closing costs. What should you expect?
Before making the decision to buy a Boston condo for sale or a single-family home, it’s important to plan for all the costs you’ll be responsible for. While you’re busy saving for the down payment, don’t forget you’ll want to prep for closing costs too.
Here’s some helpful information on what those costs are and how much you should budget for them.
What Are Boston Condo Closing Costs?
A recent article from Bankrate explains:
“Closing costs are the fees and expenses you must pay before becoming the legal owner of a house, condo or townhome . . . Closing costs vary depending on the purchase price of the home and how it’s being financed . . .”
Simply put, your closing costs are the additional fees and payments you have to make at closing. According to Freddie Mac, while they can vary by location and situation, closing costs typically include:
- Government recording costs
- Appraisal fees
- Credit report fees
- Lender origination fees
- Title services
- Tax service fees
- Survey fees
- Attorney fees
- Underwriting Fees
How Much Are Boston Condominium Closing Costs?
According to the same Freddie Mac article mentioned above, they’re typically between 2% and 5% of the total purchase price of your home. With that in mind, here’s how you can get an idea of what you’ll need to budget.
Let’s say you find a home you want to purchase at today’s median price of $384,500. Based on the 2-5% Freddie Mac estimate, your closing fees could be between roughly $7,690 and $19,225.
But keep in mind, if you’re in the market for a home above or below this price range, your closing costs will be higher or lower.
Make Sure You’re Prepared To Close
Freddie Mac provides great advice for homebuyers, saying:
“As you start your homebuying journey, take the time to get a sense of all costs involved – from your down payment to closing costs.”
The best way to do that is by partnering with a team of trusted real estate professionals. That gives you a group of experts to help you understand how much you’ll need to save and what you’ll want to be prepped for. It also means you have go-to resources for any questions that pop up along the way.
Boston Condos for Sale and the Bottom Line
Planning for the fees and payments you’ll need to cover when you’re closing on your home is important. Partnering with a local real estate professional can give you the guidance and confidence you need throughout the process.
Click Here to view: Google Ford Realty Inc Reviews
_____________________________
Boston real estate and closing costs. What should you expect?
There are always closing costs when buying a Boston condo. Most closing costs are related to the loan. There are origination fees and the buyer pays for the appraisal.
How much are closing costs for a Boston condo
Boston condo buyers with financing will get a good faith estimate and will know what the closing costs will be. Generally, the buyer can expect to pay closing costs that will add up 3% of the sale price. Sometimes buyers ask the seller to help pay the closing costs.
When the buyer is paying cash they will still pay for title insurance, a closing fee, a title search, and a few more fees. Prorated taxes and condo fees. There is no good faith estimate. The best way to find out what the closing costs will be is to get an estimate from the title company that will do the title work and the closing.
Closing costs for cash buyers
The closing costs for an all-cash offer are much lower than what they are when the purchase is being financed.
With a cash offer, the buyer needs to make sure they have enough cash to pay for the real estate and the closing costs. Asking the seller to pay the closing costs is exactly the same as paying less. Sellers do not like to pay the buyers closing costs.
When the purchase is being financed we understand that the buyer may not have enough cash for down payment and closing costs.
People who are offering cash should get an estimate of what the closing costs will be and make sure that they have enough cash to buy the property and pay the closing costs.
Buying a Boston condo for sale always costs more than the sale price.
Boston Condos for Sale and Apartments for Rent
_______________________________________________________________________________________________
Boston real estate and closing costs. What should you expect?
How buyers and sellers in downtown Boston split the closing costs pertinent to the sale of luxury real estate is ultimately decided in the Purchase & Sales contract (P&S)itself, but this blog post details how they are typically split for the sale of Midtown, Beacon Hill or any condo sale in Massachusetts.
Boston Condo Buyers Closing Costs
Generally speaking, a buyer can expect that closing costs will run anywhere from 1% to 3% of the purchase price, the major variable being the loan points charged, if any, by their lender. Other than loan-related fees, the big costs for buyers are for escrow fees and title insurance, home inspections, condo fees, insurance and property tax pro-rations.
Boston Seller’s Closing Costs
For sellers, closing costs usually run in the range of 6% to 8% of the sales price, not including loan pay-off and any home preparation or repair costs. Typically, the largest seller costs are brokerage commissions and transfer taxes.
Boston Real Estate For Sale
Where is Ford Realty Located?
Ford Realty is located in 137 Charles Street in Beacon Hill
Byline – John Ford – Boston Seaport Condo Broker.
