Home Selling in 35406>Question Details

Jcoosie, Home Owner in 35406

what specifically are sellers closing costs and buyers closing costs?

Asked by Jcoosie, 35406 Wed May 18, 2011

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Buyer closing costs are costs associated with obtaining a loan. This can be provided through the buyer’s mortgage lender in the form of an “Initial Fee Worksheet” (formally a “Good Faith Estimate).

The seller’s typically would provide the buyers with Owner’s/Mortgagee Title Insurance (giving the buyers good title to the property), pro-rated taxes & home owners insurance, recording of the deed, as well as, providing the buyers with a clear Wood Infestation Report and transfer of the bond (if one is in place). Additionally, the seller typically pays the REALTOR ® fees.

However, in this market, we are seeing the seller’s paying some if not all of the buyer’s closing costs. Most buyers do not have the money saved for 3.5% down payment & another 3/4% in closing costs. These costs are negotiable between the buyer & seller and not set in stone.

If you have any additional questions, please do not hesitate to contact me.
0 votes Thank Flag Link Wed May 18, 2011
Traditional costs varies from state to state and area to area, but it should be spelled out clearly in the purchase agreement. In my our, in South Alabama, the standard contract says that the seller will pay for the owner's title insurance policy, the deed, the termite inspection and prorated taxes. Usually the seller also pays the Realtor fee.

The buyer costs are all the costs associated with the loan, if the buyer is getting a loan, and also the cost to close the transaction and record the deed.
0 votes Thank Flag Link Wed May 18, 2011
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