Page 72 - New Agent Real Estate training book

Closing Cost Estimates for Cash Buyer

For a buyer paying cash, their closing costs will be minimal compared to the seller’s. A buyer will only be
responsible for their attorney fees, proration of any monthly fees or dues, title search and insurance,
and title fees. These fees can be around $1,500 assuming no other charges or prepaying quarterly HOA
fees. You can always recommend the buyer speak with their closing attorney is they want a more
precise estimation of fees.

For example; $100,000 purchase price could have $1,500 in closing fees. That would be a total of
$101,500. However, any earnest money needs to be credited back to the buyer. If the buyer had
originally put up $1,000 in earnest money, you deduct it from the amount they need to bring at closing.

So $101,500 (sales price plus closing costs) - $1,000 (earnest money) = $100,500 due from the buyer at
closing.

Closing cost Estimates for Buyer Financing

For a buyer obtaining financing, their closing costs will be calculated using an ALTA statement. A buyer
looking for estimates on closing costs should consult with their lender for a detailed breakdown of fees
and closing costs. A Loan Estimate or Good Faith Estimate is a breakdown of all costs and fees
associated with obtaining and closing a mortgage. The lender is required to provide this statement to all
borrowers obtaining financing. As a general rule, remember that buyers at closing will usually be
putting down their down payment amount, closing costs, prorated items, and loan origination fees.