What are typical buyer closing costs in Silicon Valley?

Typical buyer closing costs - home buyer costs to close escrowWhat are typical buyer closing costs in San Jose? How much extra money will it take, beyond the down payment, get into that new home in Silicon Valley? The cash needed at the closing table varies depending on many factors.

Today we will offer some general information on home buyer‘s closing costs in Silicon Valley. Different jurisdictions and situations may have additional closing fees.

Typical buyer closing costs – rough estimate

Just need a rule of thumb on the costs? The average closing costs percentage is between one half and two percent of the purchase price, but your actual figure could be substantially more or less, depending on many factors. Most of our buyers pay between .5% and 1%. 

 Recurring versus non-recurring closing costs

Please note that some fees will be recurring (meaning they will be things you’ll pay again, like property taxes or HOA bills) and others non-recurring (which are one-time fees like title insurance). Where you are in the calendar year can impact fees like property taxes due at closing, too.

Some of the main factors that cause the fees due at closing to rise or fall include:

  • loans and related required fees are generally a home buyer’s steepest fee after the down payment
  • home buyers who buy down the interest rate with points will see their cash needed to close escrow rise significantly
  • whether or not you pay for inspections
  • what city you’re buying in
  • what type of home, or if it’s in an HOA or not
  • and many other smaller escrow related fees, such as if you both fund the loan and close on the same day
  • any pest work or other repairs that you pay for on the home prior to the completion of the sale (this is uncommon, but I’ve seen it happen)
  • when the next property tax bill is due (you won’t pay more or less, but it’s whether that amount is due at closing or a few months later)

There are online tools that can bring clarity to the typical buyer closing costs, but again only roughly. You will find a closing costs calculator for buyer at ORTC.com, the Old Republic Title Company’s site, and then click on the link for the online netsheets. Or use this link for their online netsheets.

Next we’ll go over what these various typical buyer closing costs can run.

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