It is a common mistake to omit closing costs when looking to buy a home in the Southern Ocean County real estate market. Closing costs in a real estate transaction can be significant and it is important to understand them before buying a house in the Southern Ocean County real estate market.
Closing costs are the fees charged to the buyer for the purchase of a home. The seller too has their own closing costs that are very different (and usually more expensive) than a buyer's closings costs. There is no "set amount" for closing costs and they vary quite a bit from transaction to transaction. In most transactions a buyer will incur the following:
There may be additional closing costs if the property is a short sale or a foreclosure. Typically, each side of the transaction will pay for their own closing costs however in some cases all or part of the closing costs can be negotiated in the sale of the house. In addition to the fees above, if a property is purchased over $1,000,000 there is a 1% mansion tax paid by the buyer to the state of New Jersey based on the total sale price. Therefore, a buyer who purchases a house for $1,200,000 would have to pay a $12,000 tax to the state of New Jersey!
The actual amount of a closing will vary greatly from transaction to transaction but you can estimate some costs.
The fees charged to originate a mortgage will depend on the lender so it is difficult to estimate however budgeting about 1%-2% of the loan amount should be more than enough.
When looking to buy a home in Southern Ocean County, before you make an offer, sit down and go over the total costs of ownership to make sure you have enough money to comfortably complete the real estate transaction. We can help you with this so feel free to contact us with any questions!