A Denver Guide to Real Estate Closing Costs

Closing costs are, unfortunately, inescapable. Closing costs are expenses and fees outside of the conclusive price of the home. Both buyers and sellers of homes pay closing fees, but buyers typically pay more unless specified in the home agreement. 

Closing Costs vs. Real Estate Costs

While sometimes closing costs and real estate costs are lumped together, they are quite different and should be categorized separately. 

Closing costs include the title and lender fees (we’ll break this out below) while real estate costs are commissions paid to real estate professionals.  

What You’ll Pay In Closing Costs

The average closing cost sits at just about 1% of the home’s purchase price. To give you an idea, if the average home in Denver’s University Park neighborhood is $727,500 (June 15th, 2019), then buyers should expect to pay around $7,275 in closing costs. 

Types of Closing Costs 

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There are many closing expenses, some of which you won’t need. To give you a general idea, here are the most common closing costs I see in Denver. 

Lender Fees

  • Appraisal fee: As part of the lender fee, this confirms the fair market value of the home. 

  • Application fee: This includes credit checks and sometimes an appraisal fee. Ask your lender for details and estimates. 

  • Interest & taxes: Daily interest and property taxes start accruing immediately. 

  • Other Bank fees: Your bank can charge a number of fees including originating and underwriting the mortgage.   

  • Inspections: Home and pest inspections should be completed by an independent party. 

Title Fees

  • Title company fee: It takes time and expertise to prepare thorough documents and accounts, which you’ll pay for. 

  • Recording fee: Recording the transaction at the state level requires resources as well. 

*There may be additional closing costs. Contact us for a more in-depth review of potential expenses. 

Reducing Closing Costs in Denver

Many costs are fixed, but you can reduce some closing costs if you work with an experienced real estate agent, lender, or contractor. They can help you navigate fees and tell you when (and how) to avoid unnecessary closing costs. 

If you’re looking to buy or sell your home, reach out to Frontgate Realty Group! We can appraise, buy, and sell your home in a painless and fair process. With over 20 years of experience in South Denver, we’d love to help you buy or sell your home. 

Call us at (303) 300-9129. 

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