PSI Virginia Real Estate Practice Exam

Which of the following is a common closing cost that buyers typically face?

1. Realtor commissions

2. Homeowner's insurance premiums

3. Inspection fees

4. All of the above

The correct answer is: All of the above

Buyers often encounter a range of closing costs when finalizing a real estate transaction, and one of the key aspects to understand is that multiple fees contribute to these overall expenses. Realtor commissions are typically paid as part of the transaction and are often factored into the overall closing costs, although they are frequently negotiated between the seller and the listing agent. Homeowner's insurance premiums are also a common expense that buyers must address before closing, as lenders usually require proof of insurance to protect their investment in the property. Additionally, inspection fees for services such as home inspections, pest inspections, or radon testing are standard costs that buyers usually encounter to ensure the property is in acceptable condition. Since all these costs—Realtor commissions, homeowner's insurance premiums, and inspection fees—are typical parts of the financial obligations buyers face during closing, the answer that encompasses all these elements reflects a comprehensive understanding of the closing process and its associated costs.