Home Buyers’ and Sellers’ Closing Costs

When buying or selling a home, the costs of the home are not all that must be paid for. Below is a list of items that buyers and sellers can expect to pay in most transactions. Obviously, if a buyer is paying cash (not securing a mortgage on the property), those costs relating to a loan would not be required (marked by an asterisk [*]).

Buyers’ fees
1) Document preparation (if required)
2) Notary fees (if required)
3) Recording fees
4) The escrow fee (if required only of the buyer or half of same if split between buyer and seller)
5) Termite inspection (if required)
6) Homeowners’ association transfer fee (if required)
7) Any new loan fees (except those paid by the seller)*
8) Interest charges on the new loan from the date of funding to 30 days prior to the first payment date*
9) Home warranty (if written into the contract)
10) Buyers’ title insurance premium
11) Fire insurance premium for the first year
12) All prepaid deposits for taxes, insurance, private mortgage insurance*, and the like

Sellers’ fees
1) The owner’s title insurance premium
2) The escrow fee (if required only of the seller or half of same if split between seller and buyer)
3) Notary fees (if applicable)
4) Any loan fees required by the buyer’s lender (if included in the contract)*
5) Pay-off of all loans including accrued interest, statement fees, reconveyance fees, prepayment penalties (if they apply)
6) Termite inspection (if required)
7) Home warranty (if written into the contract)
8) Any judgments, tax liens, and the like on file against the seller or the seller’s property
9) Recording fees to clear all documents of record against the seller
10) Prorated and delinquent taxes unpaid at the time of title transfer
11) Any unpaid homeowner association dues
12) Any bonds or special assessments (if written into the contract)
13) Real estate commission

If you have questions about these or other costs, feel free to contact me at realestate@kathyauerbach.com for additional information.