What is likely to be included in the fees termed as "closing costs"?

Closing costs are the various fees and expenses that are incurred when completing a real estate transaction and transferring ownership from one party to another. These costs typically include a range of fees associated with the purchase closing process.

Home appraisal and inspection fees are explicitly part of these closing costs. An appraisal is usually required by lenders to determine the market value of the property being purchased, ensuring that they are lending a suitable amount based on the property's value. Inspections may also be required to identify any potential issues with the property that could affect its value or safety, which is a critical step in the transaction process.

In contrast, monthly mortgage payments are ongoing expenses incurred after the purchase, and utility costs for the first month represent living costs that are not part of the transaction closing itself. Property management fees relate to ongoing management of a rental property, which occurs after the purchase is made, rather than being a part of the closing costs incurred at the time of the sale. Thus, home appraisal and inspection fees directly relate to the closing process and are clearly categorized under closing costs.