Jan. 4, 2019

Column - September 2018

General Closing Costs and Who Typically Pays What

If you are thinking about buying or selling a home, you will hear either your Realtor or your Lender mention the phrase “Closing Costs”.  Closing Costs are fees associated with a real estate transaction.  Both buyers and sellers pay closing costs in Texas.  If you are a Buyer, it means money you will need in addition to your down payment, and if you are a Seller typically your costs will be paid for out of the proceeds of the sale.

Though “Who Pays What” can be negotiated during the contract phase, the following are some of the general closing costs that a seller and buyer can expect:

Seller                                                               Buyer

Real Estate Commission                                 Lender’s Title Insurance Premium

Tax Certificate                                                Escrow Fee

Escrow Fee                                                     Document Preparation (if applicable)

Deed Preparation                                            Notary Fees

Seller’s Loan Payoff                                       Deed Recording Charges

Owner’s Title Insurance                                  Prorated HOA dues and Transfer Fees

Judgments, Tax Liens against the Seller         All New Loan Charges (with exceptions)

Pro-rated Taxes                                               Inspection Fees (property, roof, termite etc.)

Delinquent Taxes                                            Homeowner’s Insurance Premium for First Year

Notary Fees                                                     Interest on New Loan

Home Owners Warranty                                 Fees to set up the New Loan Escrow Account

Loan Fees required by Buyer’s Lender

Texas Title Insurance Premium Rates are the same, because they are set by the Department of Insurance and are based on the sales price of the property.  Lender fees are different by lender – and can be negotiated!  Buyers should ALWAYS shop their home loans to compare fees to get the best deal!

Contact me for a free sales market analysis, or if you are interested in buying a home.

Gina M. Sohmer, is a veteran, a 2nd-Generation REALTOR®, a Graduate of the REALTOR® Institute, a Seller’s Representative Specialist, an Accredited Buyer’s Representative, and a member of the Phyllis Browning Company.  You can reach her at www.ginasohmerrealestate.com or (210) 608-0650..