What is Closing Cost

Real estate closing costs refer to the fees and expenses incurred by the buyer and seller during the transfer of ownership of a property. These costs can include, but are not limited to, title insurance, property taxes, appraisal fees, legal fees, home inspection fees, and loan origination fees. Closing costs vary depending on the location and type of property, and can range from a few thousand dollars to several percent of the purchase price. The exact amount of closing costs can be determined during the due diligence process, and should be factored into the overall cost of the real estate investment. It is important for buyers and sellers to understand and budget for these costs as part of the closing process.