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:
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..