If I am paying cash for a property i am purchasing what expenses does the buyer have? Is there closing costs since there is no loan?

Asked by Teddy, 27539 Thu Apr 21, 2011

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Ron Thomas, Agent, Fresno, CA
Sat Jan 5, 2013
I think the Escrow has Closed!
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TLC Realty G…, Agent, Cary, NC
Sat Jan 5, 2013
Yes, there are still some closing costs, here are some you may encounter:

prorated taxes
brokerage fee
Title insurance
Title service fee
Recording fee
prorated HOA dues

I'd guess about 1% or or less.
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Larry Story, Agent, Greensboro, NC
Sat Apr 23, 2011
There will be minimal expenses on your end if you are paying cash. The majority of closing costs for the buyer are from the lender. So with no loan you are looking at Excise tax (otherwise referred to as the deed stamp tax) which is simply the purchase price divided by 500. Then your attorney fees for the title search and deed prep. Of course depending on your attorney it could be around $250 to $300 to close. Then there is if you are smart title insurance which will be based on the home and price. There might be a misc fee for recording but besides the Excise tax (based on the purchase price). So for a $100,000 purchase price the excise tax will be $200. So you could close for around $500 except for the title insurance.

Hope this helps,
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Nathan Wolf, Agent, Charlotte, NC
Thu Apr 21, 2011
There are recording fees to record the deed with the Register of Deeds.The recording fees are based on he purchase price and generally about $1 per thousand, but they vary by county. And I would recommend you still get title insurance on the property, to ensure your actually own the property and that any previous liens are released. You can have an attorney do this for you, and so in that case, if the attorney will do the closing, the title insurance and the recording. The attorney should give you a break on the closing fee he charges since their is no loan involved. So, all in you're probably looking at about $500 -- depending on the price of the house. This assumes about $300 for the attorney, $100 for title insurance, and $100 for recording. Based on a $100,000 purchase price.


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