Who Pays What? A Closer Look at Closing Costs

Who pays closing costs when buying a home? Does the buyer pay everything, or do the costs get divided between buyer and seller? Is it negotiable? These are some of the costs that are "customarily" borne by Buyer and Seller during a residential real estate transaction in San Diego. Take a look...


The BUYER Can Generally Be
Expected To Pay For:
•   "Lender's" title insurance policy premium
•   Escrow fee
•   Document preparation (if applicable)
•   Notary fees
•   Recording charges for all documents in buyer's name
•   Termite inspection (defined by contract)
•   Tax proration (from date of acquisition)
•   All new loan charges (except those required by lender for seller to pay)
•   Interest on new loan from date of funding to 30 days prior to first payment date
•   Assumption or change of records fee for takeover of existing loan
•   Beneficiary statement fee for assumption of existing loan
•   Inspection fees (roofing, property inspection, geological, etc.)
•   Home warranty (defined by contract)
•   City transfer or conveyance tax (defined by contract)
•   Fire insurance premium for the first year
•   Messenger fees (if applicable)

The SELLER Can Generally Be
Expected To Pay For:
•   "Owner'sn title insurance policy premium
•   Escrow fee
•   Real estate commission
•   Document preparation fee for deed
•   Documentary transfer tax (typically $1.10 per $1,000.00 of sale price)
•   City transfer or conveyance tax (defined by contract)
•   Any loan fees required by buyer's lender (FHV,VA)
•   Payoff all loans in seller's name (or existing loan balance if being assumed by buyer)
•   Interest accrued to lender being paid off, statement fees, reconveyance fees and prepayment penalties
•   Termite work (defined by contract)
•   Home warranty (defined by contract)
•   Any judgments, tax liens, etc., against the seller
•   Tax proration (for any taxes unpaid at time of transfer of title)
•   Any unpaid homeowners dues
•   Recording charges to clear all documents of record against seller
•   Any bonds or assessments (defined by contract)
•   Any and all delinquent taxes
•   Notary fees
•   Homeowners transfer fee
•   Messenger fees (if applicable)

Please Note: The above-listed Seller and Buyer closing costs are negotiable in any transaction
and are defined by the Contract between the two parties.

Call or email me with any questions you may have: 858-603-7879 or robertmoore@coldwellbanker.com

5 Tips for Buying a Home

Looking to buy a home? Here are five essential tips for making the process as smooth as possible.

Get your finances in order.
Start by getting a full picture of your credit. Obtain copies of your credit report. Make sure the facts are correct, and fix any problems you find. Next, find a suitable lender and get pre-approved for a loan. This will put you in a better position to make a serious offer when you do find the right house.
Find a house you can afford.
As with engagement rings, there’s a general rule of thumb when it comes to buying a home: two-and-a-half times your annual salary. There are also a number of tools and calculators online that can help you understand how your income, debt, and expenses affect what you can afford. Don’t forget, too, that there are lots of considerations beyond the sticker price, including property taxes, energy costs, etc.
Hire a professional.
While the Internet gives buyers unprecedented access to home listings and resources, many aspects of the buying process require a level of expertise you can’t pick up from surfing the web. That’s why you’re better off using a professional agent than going it alone. If possible, recruit an exclusive buyer agent, who will have your interests at heart and can help you with strategies during the bidding process.
Do your homework.
Before making a bid, do some research to determine the state of the market at large. Is it more favorable for sellers or buyers? Next, look at sales trends of similar homes in the area or neighborhood. Look at prices for the last few months. Come up with an asking price that’s competitive, but also realistic. Otherwise, you may end up ticking off your seller.
Think long term.
Obviously, you shouldn’t buy unless you’re sure you’ll be staying put for at least a few years. Beyond that, you should buy in a neighborhood with good schools. Whether you have children or not, this will have an impact on your new home’s resale value down the line. When it comes to the house itself, you should hire your own home inspector, who can point out potential problems that could require costly repairs in the future.

Buyers Beware: Ensure That Your Agents Are Using The Newly Revised Residential Purchase Agreement

Buyers, this may come as a surprise to some agents: The CALIFORNIA ASSOCIATION OF REALTORS® Residential Purchase Agreement (RPA) has been revised as of November 2014. The 2014 RPA is 10 pages long and contains 32 paragraphs and approx. 150 lettered paragraphs, some of which have been relocated within the RPA. The revisions encompass newly written/introduced or modified language in the Agreement. Please check with your agents to ensure that they are using the correct version of the Residential Purchase Agreement and attendant forms when submitting your offer. For more information on this subject, please feel free to call me at 858-603-7879 or email me at robert@sandiego-ca-homes.com

www.sandiego-ca-homes.com.

                                              BR/RM