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.


5 Fights Couples Have When Buying a House

When my wife and I bought our home in the Northern Kentucky area, it was quite an experience. We had a great Realtor® with whom I am now privileged to work. I can only imagine the things he must have thought about us, showing up to look at houses with our two young boys, talking about if a room was big enough...what was that smell...why would they put the switch over here...

Ah, those were the days!

Thankfully, we didn't actually fight (that I remember) about anything considering a house. We both had a concept together of what we wanted, and a price range. And outside of those things, I didn't care as long as she was happy. No really, I didn't! As long as I could have air conditioning and hot water, I was good!

However, that is not the experience everyone has.

Today, I am actually going to share a link that will take you to Realtor.com. The article was written earlier this year by Stephanie Barth, a writer, and contributor to several publications. She took this concept of…

The Top 10: Children's Resources

There are MANY things that can be used in Children's Ministry. Even at home in a family setting, it can be overwhelming to decide what material you use, what devotion book, or even what worship resource. So, in an effort to provide you with some usable resources, I would like to offer my top 10 Children's Ministry resources. No company has paid for this endorsement in any way, these are just resources I have used in ministry and think would be helpful, either for other Children's Ministry folks, or parents at home!

10-Veggie Tales
     These wonderful CGI creations sing, dance, do comedy, and provide great lessons in character that kids young and old enjoy. While the songs can be very annoying for adults, we understand that using Veggie Tales isn't about our likes, its about conveying spiritual truth to kids in a way they understand and can get it. And I also have been pleasantly surprised by the newest releases, which have been copies of classic tales (Sweet Pea Beauty…