This week my eyes were opened to a new trend starting with new home communities: The builders are having buyers pay deed stamps at closing.
The fee for deed stamps has always been part of a seller’s closing costs – the majority of a seller’s closing costs – and now builders are passing the fee on to the consumer. In South Carolina the fee is $1.85 for every $500 in the sales price, so on a $100,000 it’s $370; on a $500,000 house it’s $1850.
Having to pay deed stamps may not be enough to stop the show for you if you’re buying new construction, but it’s a fee you may not be expecting when you accept the builder’s offer to pay $3000 toward your closing costs. That $3000 gets eaten up pretty quickly, especially if you throw in a surprise $1000 fee for deed stamps.
Share this article with your Realtor® if you’re buying new construction so you can negotiate who’s paying the deed stamps right up front. It’s spelled out in the builder’s contract but it’s not highlighted or brought up when you’re signing, which means if you and your agent don’t read every word it could become a show stopper at closing… not good!
Call me at 843-870-0890 if you’re buying or selling anywhere in the world; through my network of agents in The Leading Real Estate Companies of the World I can help you move around the corner or around the globe.