Home Selling in 92571>Question Details

Michelle, Home Seller in Perris, CA

what closing costs is the seller responsible pay in a cash transaction?

Asked by Michelle, Perris, CA Fri Jun 8, 2012

I am selling my house to a cash buyer. However, I am being charged $3000 on my behalf and $6000 on their (the buyer) behalf plus real estate commission. That seems a lot in closing cost. It just does not sound right to me. What exactly am i responsible for if all i need is the title transfer.

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Ray Wright’s answer
What is the sales price and what does your contract say? The sales price will dictate how much you're paying in title, escrow, commissions, and certain other fees. It is customary for the seller to pay their share of the title, escrow, transfer fees, commissions, etc. I just sat down last night with a seller and signed an offer from a cash buyer. I included an estimated cost sheet for her and she is paying an estimated $11,000 in costs associated with the sale of $150,000. So depending upon your sales price, the $9,000 you stated may be a lot or a little. I really need more info in order to answer correctly. You should sit down with your Realtor & review the Real Estate Purchase contract, all Addenda and Counter offers & the itemized Estimated HUD-1 from escrow.

Just curious, you ARE working with an agent, correct? I certainly hope so because your agent will be able to protect your interests and make sure you don't pay for something you don't need to. I run across so many sellers these days that think they can sell their house themselves to "save money" only to find out that they are paying way more costs than they should and not getting the sales price they should. Even as a Realtor, I hired another Realtor in my office to list and sell my own home so she could take the liability and stress off my back.

Sit down with your Realtor and go over the contracts and the estimate and get a detailed explanation. If you're still not satisfied, arrange a meeting with your Realtor and their Broker and have it all explained. Selling a home costs money, but you should make sure you don't pay more than you need to.

Ray Wright
Keller Williams Realty
Direct: 951-354-1303
Email: RayWright@kw.com
0 votes Thank Flag Link Sat Jun 9, 2012
Your title and escrow (plus some other closing costs) are usually based a % of the sales price. $3,000 for escrow, title, lender payoff fees, termite (in some states), home protection, HOA, etc., is not unusual, in fact, it sounds like you're getting away on the 'cheap'!. Again, based on your sales price. (the higher the price, then proportionately you'll have higher costs). Regarding the $6,000 for the buyer's costs, what exactly are you paying for? There are no loan fees, could it be that you agreed to pay all the buyer's closing costs? That might be part of it. Repairs? Credits? Ask your realtor or escrow for a complete itemization of those costs. To answer your last question, you're responsible for what you agreed to pay. There are some 'customary' fees that buyers and sellers typically pay but nothing is mandatory (except property taxes and lender fees of course and even some lender fees can be negotiated in some circumstances). You could ask the buyer to pay them all but consider that they may decline and walk away from the transaction. Which isn't always a bad thing. The more willing you are to walk away from the table (within reason of course), the more you can usually negotiate the other party to pay.
0 votes Thank Flag Link Fri Jun 8, 2012
Your title and escrow (plus some other closing costs) are usually based a % of the sales price. $3,000 for escrow, title, lender payoff fees, termite (in some states), home protection, HOA, etc., is not unusual, in fact, it sounds like you're getting away on the 'cheap'!. Again, based on your sales price. (the higher the price, then proportionately you'll have higher costs). Regarding the $6,000 for the buyer's costs, what exactly are you paying for? There are no loan fees, could it be that you agreed to pay all the buyer's closing costs? That might be part of it. Repairs? Credits? Ask your realtor or escrow for a complete itemization of those costs. To answer your last question, you're responsible for what you agreed to pay. There are some 'customary' fees that buyers and sellers typically pay but nothing is mandatory (except property taxes and lender fees of course and even some lender fees can be negotiated in some circumstances). You could ask the buyer to pay them all but consider that they may decline and walk away from the transaction. Which isn't always a bad thing. The more willing you are to walk away from the table (within reason of course), the more you can usually negotiate the other party to pay.
0 votes Thank Flag Link Fri Jun 8, 2012
In most California deals, sellers pay for exactly the things you mentioned - agent commissions on both sides, half of escrow, all transfer fees, any HOA fees, and title fees, Yes, it's a lot! Selling a home is expensive.
0 votes Thank Flag Link Fri Jun 8, 2012
You did not say what the sale price is, so don't know exactly what the expenses would be. but you are responsible for items like, Title Policy, Recording fees, Notary, Termite if you are providing the certification, Natural Disclosure statement, escrow fees Plus your brokerage,. I would recommend you ask the escrow for a copy of the closing statement.

Also, you will need to compare it with the Purchase agreement to see what you agreed to pay for.

If you have further questions, you can reach me at 951-312-8473. or contact a Real Estate Attorney
0 votes Thank Flag Link Fri Jun 8, 2012
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