Winning Strategies in Real Estate: Over Half of All Buyers Are Surprised by Closing Costs

Over Half of All Buyers Are Surprised by Closing Costs

Surprise

According to a recent survey conducted by ClosingCorp, over half of all homebuyers are surprised by the closing costs required to obtain their mortgage.

After surveying 1,000 first-time and repeat homebuyers, the results revealed that 17% of homebuyers were surprised that closing costs were required at all, while another 35% were stunned by how much higher the fees were than expected.

“Homebuyers reported being most surprised by mortgage insurance, followed by bank fees and points, taxes, title insurance and appraisal fees.”

Bankrate.com recently gathered closing cost data from lenders in every state and Washington, D.C. to be able to share the average costs in each state. The map below was created using the closing costs on a $200,000 mortgage with a 20% down payment.

 

closing

Keep in mind that if you are in the market for a home above this price range. your costs could be significantly more. According to Freddie Mac,

“Closing costs are typically between 2 and 5% of your purchase price.”

Bottom Line

Contact me so I can help you with a lender recommendation to determine how much you’ll be responsible for at closing. Finding out that you’ll need to come up with thousands of dollars right before closing is not a surprise anyone is ever looking forward to.

 

Tony Morganti, CRS, ABR

330-352-9513

Comment balloon 4 commentsTony Morganti • March 03 2017 12:22AM

Comments

Tony, I wonder why it is that Realtors don't more commonly prime clients on their expectations regarding closing costs.

Posted by Brian L. Sirota, Esq., For Solutions: (714) 501-7660 (Bristar Realty (Realtor/Attorney)) 11 months ago

Tony - I read this today, and as a real estate professional it saddened me to know that so many buyers were surprised by their closing costs. I always review this with my buyer clients, and can usually provide them with a fairly good estimate of what their closing costs might be. I also work with the lender to make sure we are on track, and that the buyer has all the info regarding their loan, and their closing costs so there are no surprises at the closing table.

Posted by Troy Erickson, Your Chandler, Ahwatukee, and East Valley Realtor (Diverse Solutions Realty www.ChandlerRealEstate.weebly.com) 11 months ago

Troy - yes, I agree.  It is so important for buyers to be aware up front of what these costs are.  

Posted by Tony Morganti, CRS, ABR - Cuyahoga Falls, Stow (RE/MAX Crossroads in Cuyahoga Falls and Stow, Ohio) 11 months ago

Brian -  I've often wondered that myself.  We owe it to the clients.

Posted by Tony Morganti, CRS, ABR - Cuyahoga Falls, Stow (RE/MAX Crossroads in Cuyahoga Falls and Stow, Ohio) 11 months ago

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