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CLOSING COSTS- Who pays for What?

By
Real Estate Agent with eXp Realty

 

CLOSING COSTS- Who PAYS for WHAT?

It's great when a house finally sells; and life takes the progression that have been anticipated while waiting for the RIGHT offer to come along.

FOR SELLERS A lot of preparation goes into dressing the home- giving it awesome curb appeal; getting rid of clutter; making it smell nice, and of course pricing it JUST RIGHT.

FOR BUYERS Countless hours of searching the internet; driving from house to house; becoming weekend road warriors; calculating the distance between the prospective property and work; checking out school zones, and then finally walking into a home, and realizing it's THE ONE.

Room

Closing Costs-who pays for what

For all involved; the process can be very daunting; frustrating, and time consuming. When the pieces finally come together it can be a VERY good thing.

The key to maintaining your sanity is to determine your estimated closing costs ahead of time. These should be spelt out in the Purchase and Sale Agreement; however its a good idea to have an itemized list.

Closing Costs, and WHO PAYS FOR WHAT are usually as follows;

COSTS PAID BY THE SELLER

Documentary stamp taxes & surtax on deed; if any

HOA/Condo Assn estoppel fees

Recording & other fees needed to cure title

Realtor fees/Brokerage handling fees

Ranchhome

COSTS PAID BY THE BUYER

Taxes & recording fees on mortgage

Loan expenses/Property related insurance

Recording fees for deed & financing statements

Inspection fees (survey if required)

Appraisal fees/Lenders title policy & endorsements

HOA/Condo Assn application/transfer fees

Realtor fees/Brokerage handling fees

Attorney fees (if applicable) 

NOTE- Contracts/Agreements vary depending on the State you're in, and most importantly contracts can be tailored between the parties involved depending on individual needs.

 

HOMES FOR SALE IN MIAMI & FORT LAUDERDALE FLORIDAhttp://www.floridamoves.com/default.aspx?abrand=83260&agent=83260

"Knowledge & Experience WORKING FOR YOU"

 

John Saari
Worcester, MA
"The Mortgage Buddy"

Great explanation Adell. A lot of people get confused on who pays for what.

May 27, 2011 12:26 PM
Adell Forbes (REALTOR®)
eXp Realty - Atlanta, GA
"Knowledge & Experience Working for You"

Hello JOHN- Thank you for your input. It seems that lately the BIG ELEPHANT in the room is always "who's paying for what" at closing. 

I just feel that if both buyers & sellers make itemized lists there will be no surprises at closing. These costs are always a part of the agreement; however; I think that after an offer is made and has been accepted; the paperwork is pushed somewhere until closing, and who's paying for what is forgotten.

May 28, 2011 12:27 PM