For people selling their homes, closing costs are often the largest final expense.
In fact, closing costs usually are around 5% to 6% of the selling price of the home. On a $250,000 home, then, you could expect to pay up to $15,000 or more.
So we wanted to take a moment to share some strategies for lowering closing costs.
But if you decide to sell the traditional route (with a real estate agent), here are some strategies you can use…
Comparison Shop Lenders — Before getting a mortgage loan, be sure to comparison-shop by getting loan estimates from lenders. And we recommend doing so. But this advice is only applicable if you’re currently looking for a loan.
Negotiate With Buyers — If the price of your home is a good deal for the buyer, then you might try to negotiate so that the buyer is paying for some of your share of the closing costs. This is something to talk to your real estate agent about.
Negotiate With Your Agent — You might not know this, but a real estate agent’s commission is 100% negotiable. So before choosing a real estate agent, talk to them about lowering the percentage of your sales price that they’ll take home.