What are Closing Costs in a Real Estate Transaction in Ohio?

Closing costs associated with buying or selling a property in Ohio can vary depending on several factors, including the property's purchase price, the location, and the terms negotiated between the buyer and seller. Typically, closing costs in Ohio are split between the buyer and seller, but the specific breakdown can vary based on local customs and negotiations. Here are some common closing costs for both buyers and sellers in Ohio:

Buyer's Closing Costs:

1. Loan-Related Fees: These can include loan origination fees, appraisal fees, credit report fees, and points (if applicable).
2. Title Insurance: Buyers typically pay for both lender's title insurance and owner's title insurance to protect against any title issues.
3. Home Inspection Fees: The cost of hiring a professional home inspector to assess the property's condition.
4. Attorney Fees: Some buyers may choose to hire an attorney to review contracts and handle legal aspects of the transaction.
5. Escrow Fees: The fee charged by the escrow company for handling the closing process.
6. Recording Fees: Fees associated with recording the deed and other documents with the county.
7. Property Taxes: Buyers may need to reimburse the seller for prepaid property taxes covering the period after the sale.
8. Homeowner's Insurance: Upfront premium payments for the first year of homeowner's insurance coverage.

Seller's Closing Costs:

1. Real Estate Agent Commission: The seller typically pays the commission for both their agent and the buyer's agent.
2. Transfer Taxes: Some areas in Ohio may impose transfer taxes on the sale of real estate.
3. Attorney Fees: If the seller chooses to have legal representation, they may incur attorney fees.
4. Title Search and Title Insurance: Costs associated with providing a clear title to the buyer.
5. Prorated Property Taxes: The seller may need to reimburse the buyer for any prepaid property taxes covering the period after the sale.
6. Home Warranty: If the seller offers a home warranty to the buyer, they will bear the cost of the warranty.

It's essential for buyers and sellers to review the estimated closing costs with their real estate agent or attorney before completing the transaction. This will help ensure that both parties are aware of their financial responsibilities and can plan accordingly. Additionally, closing costs can be negotiable between the buyer and seller, so it's essential to communicate and work together to reach a mutually agreeable arrangement.

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