What are closing costs?

Closing costs refer to the various fees and expenses that are incurred during the closing phase of a real estate transaction. This typically includes a range of charges associated with completing the sale of a property, such as title insurance, appraisal fees, attorney fees, and recording fees. These costs are generally paid by both the buyer and the seller and can vary significantly depending on the location and specifics of the transaction.

This understanding is crucial for both buyers and sellers, as they need to anticipate these costs when budgeting for a home purchase or sale. By recognizing that closing costs encompass a wide array of necessary expenses at the finalization point of the transaction, stakeholders can better prepare for the financial obligations involved in real estate dealings.