Who pays what cost in a real estate transaction?

One question that I am frequently asked by clients is: which services are they expected to pay upon the closing of a real estate transaction?  While the answers vary and most expenses are negotiable the following table indicates who customarily pays for the service.  The table includes three categories Cash sale, Federal Housing Authority (FHA), and conventional loans. There may be other cost that are not included, however the list includes the most common real estate, loan and title fees that are incurred in a real estate sale.

 I have purposely excluded Veterans Administration guaranteed (VA) loans from the table as there are some strict guidelines associated with VA loans upon where there are no negotiation. FHA loans also have some requirements that cannot be waived.  With the recent news that Fannie Mae and Freddie Mac have been taken over by the federal government there will undoubtedly be some new guidelines that will affect both VA and FHA loans. 

 If in doubt ask your realtor, loan officer or escrow officer about what cost you will incur.  The best advice I can offer is that if you want to negotiate the cost of a service do so, when you are negotiating the purchase contract.

Mary Monday is an Associate Broker at
RE/MAX Peak Properties

She can be contacted at:
(928) 779-9090
Mary@MaryMonday.com
www.MaryMonday.com