Home Buying in Oro Valley>Question Details

Michele Knox, Home Buyer in Oro Valley, AZ

Is there some % of house price (if buying) that you can assume for closing costs? Same for selling....?

Asked by Michele Knox, Oro Valley, AZ Sun Feb 24, 2013

Help the community by answering this question:


Unfortunately no. Some of the closing costs are fixed costs, such as the appraisal cost and usually some lender fees, and some title costs, nor are the escrows that would be established directly related to the house price or mortgage amount. Other costs do vary by the size of the loan or house price, such as title insurance and escrow fees and if there are points on the mortgage. But when I see sellers's contributing 3% towards the buyer's closing costs, that is usually enough to cover all the buyer's closing costs. As a mortgage lender, I am not as familiar with the seller's side, but since they are going to pay both fixed costs such as costs associated with their taxes to the closing date, and that is not related to the home price exactly, there would again not be a specific percentage associated with their side either.
0 votes Thank Flag Link Mon Feb 25, 2013
Included in Selling closing costs is the commission being paid which on average is 5-6%. Title insurance and escrow fees which are based on the price of the home. Is the seller contributing to the buyer's closing costs and are they paying for a home warranty? Also are any taxes or HOA fees due. It's hard to come up with an exact % as every deal varies, but you can probably figure about 7% to play safe.

As far as buyers closing costs, it depends on whether you are paying cash or if there is a loan. If it's cash you just pay the escrow fee and any prepaid HOA fees or taxes. Most likely the fees will be about $1000-$1500 if there are no large capital improvement fees to the HOA. If there is a loan involved, then you have the loan costs and you will also will be required to pay for title insurance. Many times the loan costs can be put into the back end of the loan, so again this will vary. Overall on average you can figure total closing costs including a loan will run about 2-3% of sales price.

Again this is all an estimate as every deal is different.
Hope this helps
Lorrie Feld
Keller Williams Integrity First
0 votes Thank Flag Link Sun Feb 24, 2013
Yes and No! It all depends in the market area where you place your offer. If you are in a competitive market where sellers get multiple offers in a relatively short time then it may not be advisable to ask seller to pay for your closing costs unless you make your offer above and beyond the seller's asking price. In fact this may not even work unless your down payment amount is substantial thereby getting the seller's attention. However if you are placing your offer in a depressed market area then the seller will be happy to accommodate you in any way they can. Hope that helps.

Merdad Meraban
US Preferred Realty Inc.
0 votes Thank Flag Link Sun Feb 24, 2013
Yes, please talk to your lender for the buyers closing costs. Majority of buyers are asking for the sellers to pay closing costs, but in today's market some properites are getting multple offers.

Are you working with a Realtor? If not, please consider starting a relationship today. Reason I ask, this is a great question for them to review with you, set your expectations as to what to expect.

Best of luck.


Spirit Messingham, PLLC
3rd Generation Full-Time Realtor®
Tierra Antigua Realty
Direct (520) 471-6900
Fax (866) 365-5208
0 votes Thank Flag Link Sun Feb 24, 2013
I think you are asking if there is some formula to figure out closing costs based on price. Most of your closing costs will be originated by the lender as points or fees. You should ask the lender what his costs are. The others will be survey, title search, attorney fees or title company, recording fees and inspections. These all vary somewhat. Your Realtor and lender will guide you - ask them.
0 votes Thank Flag Link Sun Feb 24, 2013
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