When you sell a home in Nevada, or any state for that matter, there are a number of fees you’ll have to pay when you close on the property. One of them is closing costs, which are processing fees paid to the lender. Lenders charge these fees in exchange for creating the loan. Because the buyer is receiving the loan, they are responsible for most of the closing costs. However, sellers often still pay some of them.
Why Do Sellers Pay Closing Costs?
The main reason why sellers may offer to pay some or all of the buyer’s closing costs is to help sell their house faster. It’s not uncommon for buyers to ask for things to make the sale more attractive, especially in a buyer’s market. If you only have one offer on your house and they’re asking for $10,000 in closing help, then you may have no choice but to negotiate with them on this.
There are a lot of buyers out there who are struggling to come up with a down payment, moving costs and closing costs. Offering or at least being willing to help with the closing costs can bring in more potential buyers, increasing competition and leading to a faster sale and higher sale price.
Of course, you’ll always want to look at your location to determine how hot the market is, and if picking up the buyer’s closing costs is worth it. If your market is competitive, housing inventory is low and prices are climbing, offering to help pay for closing costs probably isn’t necessary.
Keep in mind that the market is already changing due to increasing interest rates. If you plan to sell your house in the fall, you may be working in a buyer’s market.
What Do Closing Costs Include?
In Nevada, average closing costs with taxes are around $5,585.68. These costs include a number of things such as:
- Application fees
- Attorney fees
- Closing fees
- Courier fees
- Credit report fees
- Escrow deposit
- FHA mortgage insurance premium
- Homeowner association transfer fee
- Homeowners insurance
- Lender’s title insurance
- Origination fee
- Owner’s title insurance
- Private mortgage insurance
- Title search fee
- Transfer tax
- Underwriting fee
As you can see, there are many fees that go into closing costs. Offering to pay part or all of these fees is a great way to get ahead of the competition and increase your buyer pool by 25 percent.
Don’t Want to Pay Closing Costs? You Don’t Have To!
It doesn’t always make sense to cover the buyer’s closing costs. If you’re underwater in the mortgage, for example, you’re not going to be making any profits off your sale. In this case, you can try to sell your house without the help or you can consider a cash sale.
At We Buy Any Vegas House, we buy properties in as-is condition for cash. Our closing costs are much lower because we’re using our own money and not working with a lender. Not only that, but our cash buyers typically pick up most closing costs. This way, sellers get to keep their full cash offer.
To get a free cash offer on your house, get in touch with We Buy Any Vegas House today.