Checking The Pulse Of The Kansas City Real Estate Market
The real estate closing is usually the last big hurdle when buying or selling a home. Most closings are an after-thought but what goes on behind the scenes is vital to a successful real estate transaction and can surprise a buyer or seller — and even a seasoned Kansas City Realtor on occasion. Kansas City home buyers and home sellers who are nearing the end of their home purchase or home sale need the transaction to go off without a hitch and they don’t want to get confused with the terminology, closing costs and escrow.
In the Kansas City metro area, most real estate closings occur at a title company. In some other parts of the country, real estate closings occur at an attorney’s office. Virtually all home sellers close at the title company here in the metro area. With home buyers, probably 80% close at the title company as well. But it’s the buyer’s lenders choice on whether the loan will close at their own mortgage office or at the title company. Most lenders choose to not mess with handling the closing and let the title companies earn the profit from doing so.
You may hear a closing referred to as a settlement closing or an escrow closing and they all mean the same thing. The result in any case is the transfer of ownership of a property from one owner to another. The average closing occurs about 30 to 45 days from going under contract, but some transactions can close quicker if needed. This is especially true on cash closings and/or closings on vacant homes. If a home is occupied by the home seller or if the buyer is getting a mortgage loan, it’s pushing it to try and close the transaction quicker than 30 days out.
The amount of closing costs involved can vary greatly from one transaction to another. There’s many factors that are outside of the title company’s control and a big one is how much a particular lender may be charging the buyer to provide the loan. Whether or not an appraisal and/or home inspection are done could effect the final closing cost amount. Title insurance costs also vary and the more expensive the home, the more expensive the title insurance will be (for home sellers). There are other items to consider as well, including varying government charges, taxes and recording fees and most loans will require a buyer to put cash in an escrow account to pay property taxes and insurance as they come do.
In addition to handling the closing, the title company has the important job of providing the title insurance. Title insurance protects a homeowner’s claim to the property because the title company researches and assures the seller and buyer that there are no other issues or claims to the title on the property. Once everything is in order, we’re ready to schedule a closing time. The title company typically sends the buyer and seller a preliminary copy of the HUD settlement statement. This document details the financial figures of the transaction – for both the seller and the buyer – and this helps to ensure everyone is on the same page for the closing that is about to occur.
Posted by Jason A. Brown
