Thursday, June 1, 2017

Who Pays Closing Costs on Chicago's North Shore?

You've found your dream home on Chicago's North Shore, you've estimated your mortgage, and now it's time to go to the closing table. There is one more set of costs to consider before the deal is said and done, but as many local buyers wonder this same question, I'm here to answer— Who pays the closing costs?

The answer is both sides of the real estate transaction pay closing costs. The amount you owe in closing costs can easily be figured based on the mortgage loan amount of the purchase price, but below are a few more important points to note:

Buyers typically have more expenses
The majority of the North Shore buyer's closing costs stem from the loan. Costs including the appraisal fee, origination fee, credit report fee, recording fee, notary fee, title insurance, prepaid insurance, prepaid interest and the like will all come due at the closing table. To avoid any surprises, ask your lender to go over each expense and how it may affect your loan.

Sellers typically pay more
While buyers in Winnetka, Glencoe, Northbrook, Highland Park, Deerfield and the surrounding communities may have more expenses outlined in their final closing cost statement, sellers tend to pay more. Why? The seller is often responsible for paying the real estate commission which is based on a percentage of the total sale price of the home.

You can negotiate costs
Just like anything else in a real estate offer, you can always negotiate as there may be some wiggle room with closing costs. For instance, instead of asking for a reduction in the purchase price of the home (which may have very little affect in your overall monthly payment), you can ask for a credit toward closing costs which can allow you to save some of the out-of-pocket expense when the time comes to write that check.

Ready to buy a home on Chicago's North Shore? As your local real estate expert, I am here to guide you through the process! Give me a call today with any questions or for a list of available homes in Winnetka, Glencoe, Northbrook, Highland Park, Deerfield and the surrounding areas!

Janie Bress
Your North Shore Real Estate Expert

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