explain why

Question

Closing costs are calculated based on _____.
answer is selling price of the house

Answer 1

Closing costs are calculated based on the selling price of the house because they are typically calculated as a percentage of the total sale price. The costs associated with closing on a house, such as title insurance, appraisal fees, and lender fees, are all based on the value of the property being sold. Therefore, the higher the selling price of the house, the higher the closing costs will be.