✏️ Editor’s Note: Realtor Associations, agents, and MLS’ have started implementing changes related to the NAR’s $418 million settlement. While home-sellers will likely save thousands in commission, compliance and litigation risks have significantly increased for sellers throughout the nation. Learn how NAR’s settlement affects home sellers.
Congratulations! You are in the final stretch! However, the joy of finalizing the real estate deal brings with it the stress of financial planning. Closing costs in Mississippi are a sum of expenses you should plan for when buying or selling a house.
Key Takeaways
- Closing costs or “settlement costs” are a set of final expenses paid for completing a real estate transaction.
- The seller and the buyer both pay closing costs in Mississippi.
- The 3 major Seller Closing Costs in Mississippi are:
- 1. REALTOR Fee
- 2. Recording Fee
- 3. Escrow Fee
- The 3 major Buyer Closing Costs in Mississippi are:
- 1. Loan Origination Fee
- 2. Escrow or Impound Account
- 3. Appraisal Fee
- In Mississippi, real estate transactions are usually closed by attorneys.
💰 CLOSING COST CALCULATOR MISSISSIPPI
What are Closing Costs in Mississippi?
Closing costs in Mississippi are a sum of fees that have to be paid to different stakeholders. Closing costs are essential for finalizing the real estate deal and transferring the ownership of the house. These settlement costs are paid in addition to the net property amount.
Who Pays Closing Costs in Mississippi?
Both the buyer and seller pay certain closing costs at the end of the real estate transaction in Mississippi.
The seller shells out a higher monetary amount as closing costs as they pay the REALTOR commission. Other fees, like documentation charges, transfer fees, etc., are paid by the buyer.
Some closing costs are negotiable, while others are non-negotiable, like taxes charged by your state or local jurisdiction.
Depending upon the market conditions, the buyer or the seller can negotiate their share of the closing costs. For example, in a buyer’s market, the seller may have to bear a portion of the buyer’s closing costs.
» Is the Housing Market Going to Crash in Mississippi: We explain what the Mississippi real estate market will be like in 2023.
Who Pays Closing Costs on FSBO in Mississippi?
While For Sale By Owner (FSBO) property sellers do not have to pay heavy real estate agent commissions, they cannot completely escape closing costs. Some of these are:
1. Property Taxes
Property tax is charged by the state and/or municipality before the ownership is transferred from the seller to the buyer. In Mississippi, the property tax is levied by the county.
2. Seller’s Attorney Fees (Approx. $247)
The law in Mississippi does not mandate the presence of an attorney for FSBO real estate transactions. However, it is highly advised to hire a real estate attorney for FSBO deals to avoid any type of legal risk.
A real estate attorney guides the owner in preparing the necessary documents like seller disclosure and drafts of other legal paperwork.
3. Pre-listing Appraisal ($250)
FSBO sellers may have to invest in the pre-listing appraisal, as it would help them find an appropriate buyer in less time. This will, in turn, lower the number of days on the market and make the sale faster.
How Much are Closing Costs in Mississippi?
The closing cost in Mississippi for sellers is approximately 2%-5% of the home’s agreement value, while the buyers are expected to pay around 2%–5% of the home’s purchase price.
Let’s put this in perspective! The median home value in Mississippi is $171,319. So, if you are selling a house in Mississippi, you may have to pay $3426- $8565 as closing costs. On the other hand, if you are buying a house in Mississippi, your closing costs may range between $3426- $8565. Both parties share agent commission costs, which can end up being an additional 2.5%-3% each.
How Much are Closing Costs for Sellers in Mississippi?
As mentioned above, when selling a house in Mississippi, you will have to pay some closing costs to legally transfer the house ownership to the buyer. These costs include several fees that need to be paid over and above the net price of the property.
Some seller closing costs are negotiable. Real estate agents in Mississippi usually have information about who pays what at closing and can help you save on closing costs.
Here are some of the prime seller closing costs in Mississippi.
1. REALTOR Fee
The seller pays real estate commissions to both the listing agent and the buyer’s agent. The average commission for real estate agent in Mississippi usually amounts to 5%-6% of the agreement value.
How To Negotiate Real Estate Commission: Check out this blog to find how how to negotiate Realtor commissions like a pro!
» How To Negotiate Real Estate Commission: Check out this blog to find how to negotiate Realtor commissions like a pro!
2. Recording Fee
The recording fee is paid by the seller to make the real estate transaction a matter of public record. In Mississippi, the recording fee ranges from $600 to $700 across different counties.
3. Escrow Fee
An escrow agent is an unbiased third party who helps you and the buyer complete the transaction. They clear the house for sale, transfer the ownership to the buyer, and the respective funds to the seller.
The escrow fee is the remuneration charged by the escrow agent for their services.
4. Home Inspection Fee
Sellers can opt for an MS state inspection to identify any major defects and issues, like plumbing issues, water damage, mold, appliance malfunction, etc., in the house that they must resolve before selling.
This can be done before the property is listed on the market (pre-inspection) or just before the closing. The average home inspection cost in MS is usually around $340.
The buyer can also undertake a home inspection. However, if the best home inspector Mississippi finds undisclosed defects, it might give them the upper hand during negotiations, or they may back out of the deal.
» Typical Seller’s Closing Costs Mississippi: Here is a detailed breakdown of closing costs to sell a home in Mississippi.
How Much are Closing Costs for Buyers in Mississippi?
These are the closing costs paid by the buyer while acquiring the property ownership from the seller. Like seller closing costs, these too are negotiable. Hence, hiring a buyer’s agent can help you save on closing costs.
We have listed some of the prime buyer closing costs.
1. Loan Origination Fees
Some mortgage lenders in MS charge buyers a loan origination fee to execute the loan with other respective documentation and legal formalities. The loan origination fee usually amounts to 1% of the mortgage loan amount.
2. Mortgage Escrow Account/ Impound Account
A part of the buyer’s monthly mortgage payments are reserved in an escrow or impound account by the mortgage lender. This reserve is maintained to pay the property tax and homeowners insurance premiums.
A mortgage servicer manages the mortgage escrow account and makes the payments on behalf of the buyer.
3. Appraisal Fee
Appraisal fees are paid to the professional appraiser who assesses the home value and ensures you get the best competitive price.
The cost for home appraisal in Mississippi varies between $250, depending on the property characteristics like its actual saleable area and its geographical location.
4. Title Insurance
A title policy in Mississippi is offered by a title company to protect the insured against any type of loss with respect to outstanding taxes, unpaid dues, default in the title, or any violations. Owner’s title insurance cost in Mississippi could be around 0.5%-1.0% of the property value.
» Typical Closing Costs for Buyer in Mississippi: Here is a detailed breakdown of the customary buyer closing costs in MS.
How are Closing Costs Calculated?
It is important to calculate closing costs while selling a house or buying one.
The estimated closing costs give sellers an idea about the home equity they will have after the sale and helps buyers find out the amount they will have to pay over and above the agreement value of the house.
» Closing Cost Calculator: Check out the closing costs calculator for calculating the closing costs for your real estate transaction.
How to Calculate Closing Costs for Seller?
Houzeo’s Home Sale Calculator helps calculate closing costs for sellers in Mississippi with a swish and a click! All the sellers have to do is enter their property location, home sale price, mortgage payoff, seller agent commission, and buyer agent commission and voila!
The Seller Closing Cost Calculator even gives sellers the estimate of their home inspection fee and home warranty fee. With the help of this home sale proceeds calculator, sellers can find out their home equity and be prepared for closing.
» Seller Closing Cost Calculator Mississippi: Check out the seller closing costs calculator for calculating the closing costs for seller.
How to Calculate Closing Costs for Buyer?
Houzeo’s Buyer Closing Cost Calculator helps calculate closing costs for buyers in Mississippi. For finding the estimated buyer closing costs, the buyers have to add the property location, home purchase price, and the down payment in the buyer closing cost estimator.
The closing cost calculator for buyer gives a detailed list of the buyer’s estimated closing costs.
Home buyers can find out everything right from origination fee, appraisal fee and survey fee to title search, attorney fee, recording fee, prepaid interest charges, escrow property taxes, and owner’s title insurance.
The Buyers Closing Cost Calculator even shows which fees have to be paid before closing and which ones have to be paid at closing.
» Mississippi Buyer Closing Cost Calculator: Check out the closing costs calculator for buyer to calculate the estimated closing costs for buyer in Mississippi.
Closing Costs in Mississippi for Refinance
Before we dive into closing costs for refinance, let’s look at the term refinance:
What is Refinancing?
Refinance, also called “Refi,” is nothing but replacing your current loan with one that offers a lower rate of interest. This helps lower monthly mortgage payments.
How Much are Closing Costs in Mississippi for Refinance?
Refinancing closing costs are the sum of several expenses paid against any services that were used in the process of underwriting and closing on your mortgage loan, which makes up 3%-5% of the mortgage amount.
The closing cost for refinancing would vary with respect to the property’s location. Overall, Mississippi mortgage refi closing costs are the highest in the nation.
Junk Closing Costs to Watch Out For
Junk costs are the additional costs that are imposed by the mortgage lender. These are usually excessive but can be challenged and negotiated for a fairer price. Some of these are:
- Application Fee: The buyer pays this fee to the lender when applying for the mortgage. Not all lenders charge an application fee.
- Loan Processing Fee: This fee is charged by the lender to execute the loan once it has been approved. Borrowers can negotiate for these charges to be waived.
- Mortgage Rate Lock Fee: This fee is a guarantee that the lender will honor the pre-agreed interest rate for a said amount for a set period.
- Underwriting Fee: Mortgage underwriters charge underwriting fee to evaluate and verify loan applications. It is a non-recurring fee. Some lenders charge it in place of the originating fee, while others charge it in addition to the same.
- Courier Fee: A fee of $20-$50 is typically charged in order to cover the courier transactions.
Note: The costs vary by region.
Conclusion
The closing cost in Mississippi is the mandatory fee that needs to be paid by the seller & the buyer. This is paid over and above the mortgage loan amount. Where the buyer pays 2%-5% and the seller pays 6%-10% against their share of the closing cost.
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Houzeo’s customer-centric approach, advanced technology, and flat fee packages make it an ideal choice for those looking to avoid paying high commissions and closing costs. It is the best company for flat fee listing Mississippi.
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Frequently Asked Questions
1. How much are closing costs in Mississippi?
The closing cost in Mississippi for buyers are approximately 2%–5% of the home’s agreement value. While the sellers are expected to pay around 6–10% of the home’s purchase price. For sellers, that includes the agency commission too.
2. How much are closing costs in Mississippi for buyer?
The buyer closing costs are the charges paid by the buyer while acquiring the property ownership from the seller. These charges included several fees that need to be paid over and above the agreement amount and are negotiable too. Hence, you would need the best listing agent that would benefit you in this deal.
3. How much are closing costs in Mississippi for seller?
The seller closing costs are the charges paid by the seller while transferring the property ownership to the buyer. These charges included several fees that need to be paid over and above the agreed amount and are negotiable too. Hence, you would need the best listing agent that would benefit you in this deal.
Also Read
- Who Usually Pays Closing Costs in Mississippi: Closing Costs in MS can vary according to the type of real estate deal. Find out which closing costs you are responsible for.
- Title Insurance Premiums in Mississippi: Protect your real estate investment with title insurance.
- MLS Flat Fee Mississippi: Flat Fee MLS companies in Mississippi can help you save thousands on commission fees. Read the curated list of the best companies near you.
- Cash Buyers for Homes in Mississippi: Companies that buy houses for cash in Mississippi ensure fast closings and offer instant cash deals. Who’s the best real estate cash buyer in 2023? Read on!
- How to Sell My House for Cash: Find out the different ways to sell your house fast for cash.
- Ways to Sell a Home Fast Mississippi: There is more than one way for selling your house fast in Mississippi. Read on to find out more.
- Selling a Home As Is in Mississippi: Check out how you can sell your house as is in Mississippi.
- How To Sell a House without a Realtor in Mississippi: If want to sell your Mississippi house on your own, check out this guide to help you through the process.
- How To List on the MLS: List your home on the MLS yourself without hiring a real estate agent.
- Mississippi Real Estate Form: Check out how to create a contract for an FSBO transaction.
- For Sale by Owners Websites: These websites can help you market your property to prospective buyers directly.
Additional Resources
- Top Real Estate Companies in Mississippi: Here are the top real estate companies in Mississippi that can help you with all your real estate needs.
- Best Real Estate Websites Mississippi: Find out which are the best real estate websites in Mississippi that can help you crack a smooth real estate deal.
- Licensed REALTORS in Mississippi: There are thousands of REALTORS in Mississippi. Check out this blog to find the best one for you.
- Top Real Estate Brokers in Mississippi: Real estate brokers in Mississippi can help buyers and sellers with a hassle-free real estate transaction.
- Discount REALTORS in Mississippi: Discount REALTORS in Mississippi can help you sell your house at a low commission.
- Seller’s Property Disclosure Statement Mississippi: Check out the disclosure requirements for selling your house.
- How to Stop Foreclosure in Mississippi: Read on to find how you you stop your property from going into foreclosure.
- Best Time to Buy a House in Mississippi: Check out if it’s the best time for you to buy a house in Mississippi.
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