Whether you’re buying or selling, you’re probably wondering how to avoid closing costs. They’re a pain no matter what side of the transaction you’re on; for buyers, they can add to an already expensive purchase; for sellers, they take a sizable chunk out of the sale price of their home.
Unfortunately, there’s no way to eliminate them altogether, but there are ways you can lower your closing costs regardless of the state of the market. Not all of them are straightforward, and not all will save you a huge chunk of cash.
In this guide, we’ll explain tactics that buyers and sellers may consider to reduce their closing costs. Keep in mind that the viability of any strategy will depend on the particulars of each sale and overall market conditions.
Reduce Closing Costs With a Cash Offer
HomeLight’s Simple Sale platform provides you an all cash offer for your home, helping you avoid both a listing agent’s commission and reduce closing costs.
Closing costs by loan type: What to expect
Before we talk about how you can reduce or waive certain parts of your closing costs, it is important to understand that closing costs vary depending on the type of loan you choose. Understanding these differences can help you prepare for expenses and identify potential savings.