If its an actuak "closing cost" than it is a fee needed to fund the loan- whether it is a portion of the transfer tax- a years home owners insurance, a years county, local and school paid up front as your lender requires. The cost of doing business with your lender of choice may have some area of negotiation such as the origination charge etc,,, but again, If you are an educated consumer you shoukd be shopping rates and fees right now. asked for good faith estimates and ask questions!! see what corners they may be willing to cut etc... There is not a HUGE room for reduction I can promise you that. If your buyer agent charges you a fee ( I do) that may be something that you can ask to have removed etc... but If im saving someone 10,000 on a mortgage Im pretty sure I earned the extra 500 bucks :) so I dont cut mine. What you should really try to take advantage of is how much seller assist your particular type of mortgage will allow for- Conventional usually no more tha 3%-- FHA 6% and in some cases w VA up to 8%! thats where you are really going to limit what you are brining to the table at closing... yes, you are paying it back over thirty years an 3,9 pct but.... whats the downside to that... Anyway im happy to help should you want to talk further. Doug Caye Coldwell Banker 412 576 5561 or e mail me at firstname.lastname@example.org . If you are working with a quality lender and agent they will work with you as best they can.... more
Hmm, a question posted by "Trulia" in Trulia, listed as San Francisco and inquiring about New York.
Okay, regarding "which costs are potentially negotiable in closing costs," that depends upon whether the purchase is a resale or unit in a new development. In a new development, the sponsor expects the first-time buyer of the unit to pay the NYS and NYC transfer taxes. However, that can be negotiated. New developments also expect buyers to pay the sponsor's legal fees which, again, can be negotiated.
Purchase price, of course, is always negotiable, whether on a sponsor unit or a resale. Sometimes, if a co-op has a particularyly high maintenance fee or a condo has particularly high common charges, sometimes the seller might be willing to pick up 6 months or year of that. As far as beyond traditional closing costs, there may be some negotiation for leaving a particular item, such as a chandelier, or a wall unit that fits very well, but that's a little beyond the scope of your question.... more
Hi Just looking.
The negotiable costs are appraisal, home warrantee. Keep in mind there are prorations on fees that stay with the house like taxes and hoa dues. Some fees are dependant on the type of loan (or no loan)
When you are purchasing a bank owned home or a short sale, the bank will not pay these items.
Your lender will give you a good faith estimate when you apply for a loan. I always go over an estimate of cost sheet on my initial buyer meeting.
For a ball park number, closing costs are 4% (plus your down payment). Sellers can contribute up to 3% towards those fees.
Call or email me when you are ready to move forward.
Up to the limit your lender will allow. Your lender will have a dollar cap on the total credit you can receive from the seller. Often the seller can buy all of the buyer's closing costs, but you do it in lump sum. You don't "negotiate" each cost...you ask for a credit to pay the total costs. You need to know that $ amount and not simply say "all". And you need to know that your lender will allow that $ amount. Usually they will allow up to 3%...but no more than the actual costs.... more
Congratulations on your new home purchase - this is both an exciting and a nerve-wracking time. There are so many variables without knowing your exact situation it's tough to determine what is correct - however, just chat with your lender and/or your Realtor and they can explain everything.
You should have a GFE and an estimated HUD. On page 1 of the HUD at the very bottom - typically Line 303 - the Total amount of cash you need to bring should show.
Best of luck -... more
When you sell a house you need to provide the buyer a free and clear title to the property. Title Insurance investigates the history of the title and insures that should any undiscovered lien appear, they are responsible. There are a number of other benefits to the buyer, but it is required under most, if not all circumstances I can think of.
The buyer, if they are financing, will also buy a Title Insurance policy for the balance of their loan. This tells the lender that they will remain in first priority should the buyer default. There are exceptions for property taxes, but little else.
Commissions should appear on a separate line item. In California you can close with an Attorney or an Escrow Company. You will pay 1/2 the total escrow costs with the buyer paying the other half. My understanding is that the vast majority of closings are done with Escrow companies, but talk to your own agent for recommendations and options.
When you select an agent ask them for detailed breakdown of your closing costs. We call this an estimated net proceeds worksheet. The figures will be based on some assumptions such as when you close, amount of taxes you have paid, what the final price will be, etc. This is a reasonable request that most agents can do fairly easily.... more
The ALTA title policy will protect you and your lender. It insures the purchaser (and their mortgagor) free and clear title to the property. In some counties in it customary (but not compulsory) that title and escrow fees are paid by the seller, and in some county those fees are paid by the seller. Regardless of who pays the title and escrow fees, the difference between a CLTA policy and an ALTA policy is 'always' paid by the purchaser if they're borrowing money to make the purchase.
The $495 buyer agency fee is probably not a commission to the seller's agent, but is paid to a short-sale facilitator. There is some question whether these fees are legal, but they range from $495 up to $1500.
If you had your own agent representing you they may be able to negotiate these fees for you, they may not. They may also be able to assist with re-wording the terms of the contract so that they are clearer and more beneficial to all parties. As it is, you have chosen to deal with the seller's representative, so you don't have someone working on your behalf.
Just for your own benefit, the legal definition of 'agency' is that the agent must put their clients' needs first. Ahead of their own, ahead of their company, ahead of any buyer who may make an offer on the property. If the agent is representing both sides of the transaction it can be difficult to provide full agency services to both seller and buyer. I, personally, do not represent both seller and buyer unless under the most extreme circumstances - because of this very fact.
Hi Janelle, first of all, you do not want the Buyer's sister to do the paperwork. YOUR friend or an attorney should do that so that your best interests are protected. If your friend is a Realtor, you should give him all the particulars and ask him to a prepare a form called a Seller's Estimated Closing Costs. You will have to ask him how much his company will charge just for helping you out. May be as low as 1 or 1.5% or something. If the Buyer's sister did not attend the first showing with you, you have no obligation to pay her a dime. The Buyer can pay her sister out of pocket.
The Buyer's sister can guide them through signing the contracts when you have them prepared, scheduling how inspections, etc.
Have you reviewed/confirmed their financing? Have you received a good faith deposit?
Please feel free to email me in private if you need any clarification on any of this. Congratulations and good luck!
The seller pays for your title policy and you would pay for your lenders policy if you didn't negotiate something else or were not paying cash.
Call me if you haven39;t got an agent to assist you.
Southern Premier Realty
The seller gets to approxiamately pay for:
Title Insurance $1200
Prorated 2011 and 2012 unpaid taxes at at about 110% of the 2010 total
Your attorney $350?
Your association docs $250
Broker commissions(call me for specifics)
Transfer tax to Village, County and State is $2.50 for each thousand of the sales price
So, since it is depending on the sale price and some variables, it is something we could try to crunch out more accurately after we do a market analysis.
I have been a Schaumburg Realtor for 27 years and can help you further if you wish.
Escrow services are a good idea, and a general practice in almost all real estate transactions. The costs are paid by both the seller and the buyer equally. The company to use is an agreement between both parties.... more
There is a TRANSFER TAX, that is charged when the Title Changes.
There is PROPERTY TAX, which each County charges annually, on a pre-paid basis.
And there are INCOME TAXES, in certain circumstances.
For any more information, please contact a Tax Professional.
Happy New Year... more
what does your contract say about back taxes? Are you responsible or the seller (bank). here in Florida the seller is normally responsible to day of closing. that said, since tax bills have come out for 2011, at least here, many title companies are paying the taxes. Just have to look to see which column the money is coming from.... more
It's hard to give you a ballpark figure without knowing the listing %.
Most of the closing costs are on the Buyer side because the buyer has to pay Taxes, Insurance, Mortgage origination and a couple of other fees.
If you give me the listing % and at least an area where you want to purchase your house for 350,000 i can tell you within 1000 of all the costs related to the transaction.
Please feel free to contact me any time 267 738 0886 or by email email@example.com
Alexander Shulzhenko, ePro.
Realty Mark Cityscape
267 738 0886
It means that the owner may be willing to be the "banker" and extend financing for a while. This can be a good option for a buyer who currently doesn't qualify for conventional financing but believes they will be able to in the near future. There are no set terms; they can be whatever the buyer and seller agree to.
For a buyer, it can mean getting a loan. To the seller the rate and down payment typically reflect a better return than they might get in the market.... more
You are the seller and you don't have any condo docs? You will have a hard time getting a buyer to pay for the docs not knowing if they are going to be the approved buyer and it would make the transaction go more smoothly if you had the docs available to give to potential buyers. Since it is a short sale I see your reluctance to spend money since you are not making any on the sale. Condos can charge what they want for condo docs, but $700 seems high. Do any of your neighbors have a copy that you could copy?... more