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
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.