Skip to main content

What Do "I" Pay When Buying or Selling?

One of the common things that everyone wants to know when they are ready to negotiate the final contract for a home is "what do I pay for and what does the other party pay for?"

It's a great question!

The short answer is almost everything is negotiable.

The longer answer is that there are several fees and expenses that go into buying or selling a home. For a seller, you can't just think about the price in terms of how much money you want to get. You have to think about things like:
~Do you owe money on your home still?
~Do you have improvements that will need to be made to make your home marketable?
~How much do you need to be able to move into another home, condo, or apartment?

These factors and more will help determine your selling price (not necessarily your LISTING PRICE!)


For a buyer, you don't just want to think about buying in terms of 'how much house can I afford' because what you can afford on paper could be different from what you can actually afford in reality, or what you will need to have available. Factors such as:
~moving expenses
~utility connections
~property tax payments
~regular maintenance

and more can all change your budget.

Besides these factors, many people do not plan for the expenses that go into closing when buying or selling a home. They think, too often, that everything is included in the price. But that's not always the case.

Many costs beyond the agreed upon price are rolled into the 'Closing Costs' that are part of your final agreement. But what about the home inspection a buyer needs or wants to secure a loan? Or what about the costs of cleaning the home before final transfer that a seller has (even if you clean it yourself, you need supplies!)

These additional costs can leave some people in places where they feel unprepared because there is a need for extra cash, or there is less coming in from a sale than expected.

As a real estate sales professional, one of my responsibilities is to help make sure at every step of the process that you know what to expect, and what to pay for (or negotiate paying for). However, here is a handy outline that might help you understand better what to plan for or expect in the final sale that could adjust the amount you receive as a seller or what you need to bring to the table as a buyer.

This outline is not all-encompassing but gives you a general idea of what to prepare yourself for.

If you want to know about specific items, or any possible expenses or fees not listed, please email me at:
therealestatepastor@gmail.com


GENERAL areas of fees and expenses included in Closing:


 Buyer usually pays

 Seller usually pays

Mortgage recording fees                     
Documentary stamp tax                    
Intangible tax on mortgage   
Mortgage-related fees: appraisal,
   credit, survey, loan origination       
Impound reserves:  insurance, taxes
Attorney fees


Stamp tax on deed
Title insurance
Brokerage fee
Inspection fees
Title-related expenses
Attorney fees








Comments

Popular posts from this blog

Understanding Mortgage Interest Rates (VIDEO)

How do you get the interest rate that you do?

Well, there are many factors, including your credit worthiness and the interest rate set by the Federal Reserve.

The Khan Academy however, has produced a fantastic video that breaks everything down simply and makes it easier to understand.

If you are starting the process, or thinking about starting the process, of buying a home then take a few moments and watch this video to get a better understanding.


A Look at Roofing Options

When my wife and I bought our home in 2015, one of the things we wanted to know about, as may do, is the condition of the roof. There is nothing more frustrating than making a major home purchase and then finding out that you have to immediately pump thousands of dollars into it because something wasn't in a good, usable condition!

Of course, there are property disclosures that help us avoid that scenario, and those are helpful. But when it comes to your roof, even if it's in great condition today, one good hail or wind storm could potentially change that! Even without that kind of misfortune, your roof takes a beating much like the skin on your hands. Every day it takes the full force of the elements, so eventually it will come to the point of needing to be updated, maintained, or replaced.

That happened to a neighbor this past fall. When it did a group of men showed up and did something I'd never seen before... they put a metal roof on the house! Working at a church, I …

My Deal With Drains

Last year my wife and I noticed that the drain in our kitchen was starting to get very slow. Over time, despite cleaning it out and running extra hot water, it reached the point of being completely clogged. Eventually, we had to call not one, but two plumbers to get the issue totally fixed, because it turned out we had a level 5.

The stuff coming out of our drain pipe literally looked just like the stuff in this picture:



Makes you want mashed potatoes, right?

And I won't even tell you how vile it smelled. Thank the Good Lord for my wife's stash of essential oils and multiple diffusers!

Now, our problem was pretty serious, and one that had been building up (literally) for decades. Long before we moved into the house this issue existed down the drain (HA!). And the first plumber who used his auger really was a big help in giving us an understanding of what was happening and getting us on the path to clear pipes.

Unfortunately, he couldn't do all the work in one day, so we h…