What Are Closing Costs in Colorado anyway? Does The Seller Pay All Of Them?

Wondering what are closing costs in Colorado is a very common questions. Anytime expenses are brought up in life you’re going to have questions. Most likely because you want to see if you’re responsible for closing costs that will incur from selling a house in Colorado.

Closing costs are fees paid at the closing of a real estate transaction for selling and buying a property. This point in time is when the transfer of title and conveyance goes to the new buyer. Title Companies and Real Estate Attorneys bought can handle and perform this transaction. Depending on your state, some only allow real estate attorneys to facilitate the closing.

Okay, I hear you asking, “What are the closing costs in Colorado, as well as the fees?“.

Some of the fees and closing costs include title insurance, attorney fees, title service costs, recording costs, taxes, survey fees, mortgage application, points, appraisals, inspections, home warranties and of course real estate commissions.

Costs Between the Buyer and the Seller.

This is truly a negotiable situation. It really depends on what is worthwhile to you in the sale of your house. Many real estate companies offers to pay all closing costs but this is really an increasing concession in order for a seller to choice them. It’s not a mandatory obligation for any buyer to pay all closing costs. Standard tradition is for the buyer and seller to split closing costs straight down the middle.

However, you the seller will be picking up the tab in paying the full 6% real estate commission if you’ve decided to list your house with a real estate agent. At what feels like the same rate appreciation for Denver houses is happening, that same appreciation in popularity is growing for sellers to choose not to use a real estate agent. The more expensive a property, the less you keep in your pocket after commissions.

One more thing to consider as the seller of the property. When a buyer offers a price, it doesn’t include anything additional to the purchase price. In other words, the sale is subject to the buyer paying full offer price minus any unpaid taxes, mortgages or liens that may be left on the house.

Why Do Buyers Offer To Pay All Closing Costs?

What are closing costs in Colorado and why do buyers offer to pay them.. Well hopefully by now you have a good understand of closing costs in general. House buying companies generally offer to pay them because they understand not everyone is going to be in a position to benefit from the sale unless these are covered. Some seller may owe too much on a mortgage and will actually lose money when selling if these are not covered.

Most of the time though, it’s a good thing to do and a real estate investor will earn their money back on the investment itself. Out of all the situations a seller could be facing such as probate or relocating, giving sellers an option to have a stress free sale is a must.

What other expenses are not mentioned here?

We already covered what are the closing costs in Colorado are but you may be wondering if there’s anything else. Maybe if you have to pay for the moving truck, an estate sale or even repairs. Some of those are negotiable and some are the sellers responsibility. Talk with whoever is going to buy your house to see what your options are and if you can be offered a referral for any companies the buyer may know of.

As far as repairs go, those are going to be deducted as an expense from the purchase price and offer the buyer will make ahead of time. Whether you’re selling to a house buying company or a retail buyer, both are going to have contingencies based on a home inspection.

If you’re still unsure about what are closing costs in Colorado, give us a call! We’d be happy to answer questions or refer you to a local title company we actually work with. We can be reached at 303-997-2045 or simply fill out the form here if you’d like to sell a house as well.