Average Closing Costs in Virginia
After saving for a down payment, first-time homebuyers are often taken aback to learn that they would need to pay additional fees for the closing cost. In Virginia, closing costs refer to expenses incurred when settling a real estate transaction. The closing costs must be paid to complete the real estate transaction and transfer home ownership. The average closing costs in Virginia are 3.01% of the sales price. The median home price in Virginia is $382,958 and would require an investment of about $11,534. In Virginia, real estate closing fees are split between the buyer and the seller. The seller must pay the Realtor’s commission, the total amount spent on closing fees. In contrast, the buyer is responsible for all other costs, such as those associated with documentation, transfers, etc. Closing fees might be negotiated between the buyer and seller depending on the state of the Virginia real estate market.
Closing Cost for Buyers in Virginia
These are the expenses incurred when a buyer takes title to a property from a seller. Similarly to the seller’s closing costs, they can be negotiated. Here is a list of a few of the most common buyer closing cost Virginia:
Loan Origination Fees: Some mortgage lenders will charge a buyer this fee in addition to the interest rate and charges on loan. The origination fee on a mortgage loan is typically one percent of the total loan amount.
Mortgage Escrow Account: The finest Virginia mortgage lenders hold most of the buyer’s monthly mortgage payments in an escrow or impound account. This fund pays property taxes and homeowners insurance.
Appraisal Charges: Professional appraisers determine the home’s worth and negotiate the best deal. Appraisal fees in Virginia range from $300 to $500, with the exact price depending on factors including the property’s location and size.
Title Protection: In the event of a loss due to unpaid taxes, unpaid dues, title default, or infractions, Virginia title insurance will cover the costs. In Virginia, the price of title insurance may range from $200 to $250.
Closing Cost for Sellers
Virginia requires sellers to cover specific closing fees to transfer ownership of a home to a buyer legitimately. Closing fees paid by the seller are often up for discussion. Listed here are some of the common closing costs in Virginia:
Realtor Fee: The seller pays a commission to both the listing agent and the buyer’s agent. Commissions for buying or selling a home in Virginia typically range from 5% to 6% of the total value of the transaction.
Recording Cost: The seller is responsible for paying the recording fee so that the sale of their property can be recorded officially.
Escrow Charge: An escrow agency acts as a neutral third party between you and the buyer to ensure the smooth closing of the deal. They prepare the house for sale, hand over the deed, and distribute the proceeds. The escrow fee is the payment made to the escrow company for handling the transaction.
House Inspection Cost: Before listing their home for sale, sellers can choose to have it inspected for problems in the property. The average home inspection price in the Commonwealth of Virginia is $450 to $650.
Remember that these are only estimates and may change depending on the deal’s particulars. It’s wise to acquire a lender estimate and compare rates. For more information on Central Virginia closing expenses, visit https://propertymanagementrichmond.com/central-virginia-closing-cost/.