What Are Closing Costs Exactly In Knoxville

You might have heard about closing costs, but do you know exactly what they include? Check out my closing cost guide to learn what costs you might not be accounting for.

What Are Closing Costs Exactly In Nashville, Tennessee?

Closing costs refer to the fees that must be paid at the closing table of a real estate transaction. These costs can vary greatly depending on where you are located, but we are going to focus on Nashville, Tennessee. Closing costs can include, but are not limited to:

• Transfer taxes
• Notary fees
• Inspection fees
• Origination fees
• Recordings fees
• Title insurance 
• Underwriting fees
• Courier fees
• Bank fees
• Wire transfer fees
• Prior liens against the property (must be paid at closing)
• Credit report fees
• Attorney fees, if necessary
• Administrative fees
• Mortgage balance or other loans against the home such as a HELOC
• Pest control treatment and report
• Mold treatment and report
• Possible repairs
• COMMISSIONS!

Who Pays?

The buyer usually picks up a majority of these fees, however it should be noted that the seller is responsible for ALL of the commissions. This is usually 6% of the total sales price. Other than paying off existing loans, such as mortgages, this is usually the biggest expense for the seller. In order to attract more buyers, some sellers are willing to cover some of the expenses that buyers typically pay for. 

As a seller, you are also responsible for the property taxes up until the day of closing. HOA fees are also due at this time. To learn more, visit http://tnrealestate.weebly.com/blog/4-tips-on-selling-your-home-when-you-need-to-relocate-in-nashville

What Are Seller Contributions?

This is an amount usually discussed prior to closing between the buyer and seller, in which the seller agrees to pay an amount of closing costs. An example would be that the seller agrees to put $2,500 toward the total closing costs to help the buyer. This shows that you are willing to work with buyers, and can go a long way in negotiations. 

Can Closing Costs Be Avoided?

Yes! If you choose a cash homebuyer or "cash buyer" that will cover all closing costs. A cash homebuyer will not charge you a commission since they are not a real estate agent; saving you thousands. Many times cash buyers will even cover all of the closing costs, which saves you time and hassles. 

Are repairs included?

This is something that needs to be negotiated between buyer and seller. Some houses do need significant repairs, and if the buyer is not willing to buy the home "as-is", you may be responsible for paying for them. You can always work this out prior to closing.