3 Different Closing Costs When Selling a Home for Cash

One of the great things about selling a home for cash is that there tend to be far fewer closing costs compared to selling a home via the traditional way. This is because, since the buyer is paying for the home without getting a mortgage, there is no need to work with a lender and pay for an appraisal or loan fees. Nevertheless, there are still a couple of closing costs that the buyer and/or seller are accepted to cover.

The earnest money deposit is a closing cost most commonly paid for by the buyer. Basically, it acts as a type of security deposit to show that the buyer is serious about doing business. Since the buyer will be having to fork out a relatively large sum of money to cover the cost of the home, it is essential that they show proof of financial legitimacy. Nevertheless, the amount that the buyer is expected to deposit will depend greatly on the location and the purchase agreement.

Another common closing cost includes escrow fees. When selling a home, an escrow company is often the designated third party that ensures that the monetary transaction between the buyer and seller is legitimate. Depending on the company and the situation, the escrow fee will vary. Therefore, if you as a seller have any say in what escrow company you do business with, you should definitely take the time to get quotes from multiple escrow companies before selecting one.

This may not be a fee that you have to worry about but, depending on the situation or if your state requires it, you may have to get an attorney to supervise the closing process. Attorney fees tend to be comparatively expensive compared to other closing costs, but working with an attorney could be well worth the money. After all, most sellers want to make sure that they actually get a good deal when selling for cash.

In general, many—if not all—of these closing fees will be paid for by the buyer. Nevertheless, some buyers do expect that the seller will help pay for some of the costs. Therefore, it will be essential that you, as the seller, communicate clearly with your buyer and come to an agreement on who pays for what before you sign any contract.

At BuyBHM, you don’t have to worry about paying for closing costs or fees when selling your home. Click here to get your cash offer today so that you can be on your way to a fresh start in life!