If you’re buying a home for sale in Aspen and you’re paying cash, you’ll still have to pay some significant closing costs – even without a mortgage lender involved. But what will you have to pay for? This guide explains the most common closing costs for cash buyers.
When you buy a home with cash, your journey is typically a little bit easier than most peoples’ is – you don’t have to wait for a lender to approve you, you don’t need to worry about including a financing or appraisal contingency in your real estate purchase contract, and a lot of other things simply fall into place. However, you’ll still have to come up with a little additional cash for closing costs, which are expenses you have to cover no matter what.
The most common closing costs cash buyers have to pay include:

  • Real estate transfer taxes
  • Title insurance fees
  • Filing fees and processing fees for forms that have to be submitted to the local government
  • Property Taxes
  • Home inspection fees

Usually, these costs total around 3 percent of your new home’s total purchase price. Here’s a closer look at each. 

Cash Closing Cost #1: Real Estate Transfer Taxes

Though these may not be among your highest fees, you’ll have to pay the taxes on the real estate transfer. Your REALTOR® will tell you how much these taxes are likely to cost you.
Related: What’s an escalation clause in a real estate offer?

Cash Closing Cost #2: Title Insurance Fees

You’ll have to pay title insurance fees, which help protect you if someone comes along later to dispute your ownership of the home. Title insurance is a must-have; it’s one of those things that you may never need, but you’ll be sorry if you do need it and don’t have it. 

Filing and Processing Fee

Cash Closing Cost #3: Filing and Processing Fees

When forms have to be submitted to the county recorder – such as the deed to the home – you’ll be responsible for paying the fees and costs associated with them. These fees are generally lumped into your closing costs – and like your real estate transfer taxes, they’re not likely to be among the highest closing costs you’ll pay, but they can add up.
Related: 3 ways to get a great deal in a seller’s market

Cash Closing Cost #4: Property Taxes

Generally, you have to pay for property taxes at closing. Because you’re not financing your home, you won’t have a lender to disburse these payments for you – and that means you have to figure out how much you owe, whether you’ll have to pay monthly or annually, and where the checks have to go.

Cash Closing Cost #5: Home Inspection Fees

You shouldn’t buy a home without hiring a home inspector to check it out first. Your home inspector’s services may cost several hundred dollars, but the peace of mind that comes from knowing a home doesn’t have major issues is priceless.
Related: Renovation trends that are worth the money when you sell

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