Wisconsin Buyer & Seller Closing Cost

What Are Closing Costs Like in Wisconsin?

Closing costs can feel like a mysterious extra expense tacked onto the end of your home buying or selling journey. But fear not! Understanding these costs upfront will help you budget effectively and avoid surprises at the closing table.

This blog post breaks down closing costs for both Wisconsin home buyers and sellers, giving you a clear picture of what to expect.

*DISCLAIMER*
The information provided is an estimate; your actual closing costs may vary.

Closing Costs for Wisconsin Home Buyers:

In Wisconsin, buyer closing costs typically range between 2% and 5% of the purchase price of the home. The exact amount will vary depending on several factors, including:

Loan type: Government-backed loans (FHA, VA) often have lower closing costs than conventional loans.
Negotiations: You may be able to negotiate with the seller to cover some closing costs.
Taxes: Prorated property taxes will be factored into your closing costs.
Lender fees: Origination fees, underwriting fees, and document recording fees are common.
Third-party fees: This might include appraisal costs, title insurance, and homeowner's insurance.

Here's a breakdown of some common buyer closing costs in Wisconsin:

Origination fee: 0.5% - 1% of the loan amount.
Underwriting fee: $300 - $800
Title insurance: 0.5% - 1% of the loan amount.
Escrow fees: Varies depending on lender.
Prorated property taxes: Covers the period from the closing date to the end of the current tax year.
Homeowner's insurance: First year's premium. (WI average is $1300/year)
Inspection: $250 - $500 Depending on the size of the property.
Appraisal: $300 - $600 Depending on the size of the property.

Tips for Wisconsin Home Buyers:

Get a Loan Estimate (LE): Your lender is required to provide you with a Loan Estimate (LE) early in the loan process. This document outlines the estimated closing costs associated with your loan.
Shop around for lenders: Compare closing cost quotes from different lenders to find the best deal.
Negotiate closing costs: Don't be afraid to negotiate with the seller to cover some of your closing costs.

Closing Costs for Wisconsin Home Sellers:

For Wisconsin home sellers, closing costs typically range between 6% and 10% of the selling price. Here's a breakdown of some common seller closing costs:

Real estate agent commission: Typically 5-6% (negotiable) of the selling price, but only 4.4% if you list with me! (Click here for a free home analysis)
Closing fee: $250 - $500 Covers the cost of the closing service provider.
Title insurance: Typically around 0.5% of property value.
Prorated property taxes: Covers the period from the beginning of the current tax year to the closing date.
Transfer taxes: Wisconsin has a real estate transfer tax of 0.75% of the selling price, typically split between buyer & seller.

Tips for Wisconsin Home Sellers:

Factor closing costs into your pricing strategy: When determining your listing price, consider the closing costs you'll be responsible for.
Negotiate the commission with your Realtor: Real estate agent commissions are negotiable, so shop around and compare rates.

*DISCLAIMER*
The information provided is an estimate; your actual closing costs may vary.