What are Closing Costs in Sacramento?
Closing costs in Sacramento, California, encompass various fees and expenses associated with the finalization of a real estate transaction. These costs are typically divided between the buyer and the seller and can vary based on the specifics of the deal. Here are common closing costs you might encounter in Sacramento:
Title Insurance: Both lender's and owner's title insurance policies are often required to protect against title defects.
Escrow Fees: Charged by the escrow company for facilitating the closing process.
Home Inspection Fees: If the buyer opts for a home inspection, they are responsible for these costs. But it is prudent for a Seller to get a home inspection prior to putting the house on the market so deficiencies can be repaired before marketing the property.
Recording Fees: Fees associated with recording the sale with the county.
Transfer Taxes: Taxes imposed by the city or county when transferring the property.
Property Taxes: Prorated property taxes may be paid at closing.
Attorney Fees: If an attorney is involved in the closing process, their fees will apply.
Notary Fees: Costs associated with notarizing required documents.
Pest Inspection: The cost of inspecting the property for pests or termite damage.
Courier Fees: Charges for courier services, especially if documents need to be delivered quickly.
Commission Fees: If real estate agents are involved, their commissions are typically paid at closing.
Miscellaneous Fees: Various small fees associated with document preparation, credit reports, etc.
It's important to note that the exact closing costs can vary based on the purchase price, loan amount, and specific arrangements between the buyer and seller. Buyers and sellers should receive a Closing Disclosure form outlining these costs a few days before the closing date, providing a detailed breakdown of all expenses. Working with a real estate professional can help navigate these costs and ensure a smooth closing process.