Real Estate Closing Costs

toates Real Estate

Real Estate Closing Costs

Closing costs are those costs associated with your real estate transaction which are in addition to the purchase price and are typically bourne by either the buyer or seller depending on the terms of the purchase agreement or the tradition in the county in which the property is located.

Buyer Closing Costs (typical)

Buyer’s closing costs can vary depending on whether there is financing involved or not. Federal legislation requires that lenders give you a Good Faith Estimate (GFE) of typical costs associated with a “typical” transaction. Because many lenders make loans in multiple states and they err on the side of over-estimating to avoid having to re-disclose prior to the closing; you should always check with your real estate attorney for the ultimate determination of what your closing costs will be according to your purchase agreement and local custom. Buyer’s closing costs may include (some are optional):

  • Earnest Money Deposit
  • Appraisal
  • Loan fees (points, application fee, credit report)
  • Inspection fees
  • Prepaid interest
  • Mortgage insurance
  • Hazard insurance (homeowners and/or windstorm)
  • Title insurance (Mortgagee and/or Owners)
  • Documentary stamps on the note
  • Broker transactional fees

Seller Closing Costs (typical)

Seller’s largest closing cost will be the payoff of the existing mortgage, if any. Outside of that, Sellers will typically pay for the following:

  • Property taxes (prorated)
  • Documentary Stamps on the Deed
  • Broker’s commission
  • Title Insurance (Owners Policy, if by contract or local      custom)
  • Documentary Stamps on the Deed
  • Title insurance
  • Broker Transactional Fees

Can I Negotiate Closing Costs?

In addition to the sales price, buyers and sellers can negotiate which closing costs they are responsible for. Example: Buyers can ask for specific costs to be paid by Seller or simply agree to a credit from Seller to Buyer for unspecified closing costs.

Do you need a real estate attorney to assist you with your transaction? The Law Offices of Oates & Oates, P.A., can represent your interests and ensure your transaction goes smoothly. Call us today for more information on how we can help you. (954) 942-6500 extension 3.