Once you’ve searched through the extensive inventory of homes for sale in Park City and have found a house that fits your needs, knowing what types of closing costs you might have to pay can be helpful in making an offer.

For Sale in Park City

Good faith estimate

After you apply for a loan, your lender will mail out a “good faith estimate” of closing costs within three business days. Work with a real estate agent to find a reputable lender and complete the application for a loan as soon as you begin your search of homes for sale in Park City.

Keep in mind that the “good faith estimate” is an educated guess of closing costs that will be due. Always expect the estimate to be a little lower than actual costs, just to be safe. There are two types of closing costs: non-recurring closing costs and recurring closing costs. Non-recurring costs are fees that you only pay once and that will be paid on the day of closing. Recurring costs are fees that you continue to pay, including homeowner’s insurance and property taxes.

Some non-recurring closing costs can be negotiated with the seller. Sometimes the buyer and seller will split some of these fees. Since the local area is currently experiencing a sellers’ market, a seller is more likely to negotiate closing costs than come down on his or her asking price. Local housing prices are rising, and sellers are receiving multiple offers on their properties, so ask your real estate agent which closing costs are usually negotiable.

For example, you can find a three-bedroom, three-bathroom new home for sale in Park City on a 0.5-acre lot for $549,500. Instead of making an offer for less than $549,500, ask your agent to offer the full asking price and request that the seller pay some of the closing costs. When there are so many buyers to choose from, this type of negotiation can be more appealing to the seller.

by Merrell S. Jones

A REALTOR® is a real estate professional who is a member of the National Association of REALTORS®