Once the closing date is set, the excitement really grows because you
are only a step away from selling your home. Be careful not to go to the
table without knowing what to expect. It is important to know the procedure
including buyer and seller closing costs, so that you can stay on top
of everything- especially your buyer's portion of the transaction since
they may be asking you to share in some of their expenses. The total closing
costs will vary depending on the type of loan the buyer has, the location
of your home and the complexity of the transaction. To learn more details
about the elements of the purchasing agreement click the button at the
top.
Now we'll go through
the components involved in the closing process. The first component
of the costs is marketing fees- commonly referred to as commission.
The next component of closing costs are origination fees which include
a mortgage fee, and an appraisal fee. Other related costs may include
mortgage insurance, home inspection and any interest accrued on the
mortgage from the closing date to the end of the month. The taxes and
any miscellaneous items can include personal property taxes, and other
local assessments. As a seller, you will be required to credit your
portion of unpaid property taxes to the new owners- we will be able
to arrive at a very accurate estimate of this when we meet.
Next is the documentation or "Doc Fees". This covers the cost
of researching public records to trace the title and ensure that the
property can be legally turned over to your buyer at closing. Other
doc fees include recording and transfer fees that cover the legal transfer
of the deed from your name to the buyer's name. Some of these fees are
variable depending on the structure of the offer that you receive.
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