In a Clearwater real estate transaction (sale), who pays what?
Buyers and sellers each have certain closing costs they are responsible for, although who pays what in a real estate transaction is negotiable. If you’re trying to get an idea of what you will be on the hook for, here are the general guidelines.
Closing Costs For Buyers
If you’re buying a home, you will pay more than just the purchase price of the home. Buyers are responsible for several fees as follows:
- fees charged for obtaining a mortgage
- inspection fees for pest inspections and home inspections
- homeowner’s insurance which typically has to be prepaid for a year at closing
- title insurance (either owners title insurance, mortgagee title insurance or both)
- title search fees
- transfer taxes
- title insurance and escrow fees
- document stamps (a tax paid to record the documents with the county or state)
- condo or HOA estoppel fees
- Intangible Tax on Mortgage
- survey fees
- appraisal fees
- attorney or title company fees
Most buyers either bring money they’ve saved, or they roll those costs into the mortgage loan.
Closing Cost the Seller Pays
Sellers, you’re not off the hook. You have fees as well. Starting with fees or penalties to pay off your mortgage:
- real estate commission
- any repairs (if an FHA or VA inspection requires it)
- all or part of transfer taxes and escrow fees
- attorney’s fees where applicable
Of course, the balance of your mortgage will also be due as well. All of these fees are usually paid from the proceeds of the sale, so you won’t have to bring cash with you, but it will eat into how much you walk away with.
Clearwater Real Estate Transaction
A Clearwater real estate transaction is probably the biggest transaction that people will have in their life. Knowing what closing costs will be when you are buying or selling real estate is essential to a good outcome.