Who pays what cost in a real estate transaction?

By
Real Estate Agent with RE/MAX Peak Properties

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. 

 

Cash

FHA

Conventional

Down Payment

Buyer

Buyer

Buyer

Pest Inspection

Buyer

Buyer

Buyer

Property Inspection

Buyer

Buyer

Buyer

Property Repairs

Seller

Seller

Seller

Loan Origination Fee

 

Buyer

Buyer

Document Preparation Fee

 

Seller

Buyer

Discount Points

 

Buyer

Buyer

Credit Report

 

Buyer

Buyer

Appraisal Fee

 

Buyer

Buyer

Existing Loan Payoff

Seller

Seller

Seller

Next Month's Loan Payment

 

Buyer

Buyer

Taxes

Prorate

Prorate

Prorate

Tax Impounds

 

Buyer

Buyer

Hazard Insurance

Buyer

Buyer

Buyer

Flood Insurance

 

Buyer

Buyer

Homeowners Association Transfer Fee (HOA)

Split

Split

Split

Current HOA Payment

Prorate

Prorate

Prorate

Home Warranty

Negotiable

Negotiable

Negotiable

Real Estate Broker Commissions

Seller

Seller

Seller

Title Insurance

Seller

Seller

Seller

Escrow Fee

Split

Split

Split

Recording Fees

Split

Split

Split

Courier/Express Mail Fees

Split

Split

Split

Email Loan Documents

 

Buyer

Buyer

 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

 

Comments (0)