closing costs

It’s a hot seller’s market and you finally found the right home for you. When walking through it you noticed some issues that you might want to ask the seller to fix, or know you need some help with closing costs or want a home warranty.

Should you ask the seller for those concessions? Probably not. Concessions dig into the profit the seller will be making on the sale of the house.

Clean offers

In a hot seller’s market there are others who will be willing to make an offer without any requests for concessions. Those clean offers will definitely compare better to yours, even if you are offering more money.

Replacing carpet, fixing a roof or fixing other items in the home can be expensive. Paying a portion of the closing costs is as well. So even if your offer is a few thousand dollars more than a clean one, the savings to the seller in taking a lower clean offer can mean more money in their pockets.

So what can you do?

See if you can live with the needed fixes. Carpet is a mess? Have it cleaned before you move in. Even renting a carpet cleaner is only $30-$40 for a day. If the flooring is worn, see if it could be covered with a throw rug or furniture until you can afford to get it fixed.

See what the inspection report says about the roof or other fixes. No home is perfect. If it isn’t feasible, or the fixes are necessary and more than you can afford, it might be time to look for a different, lower priced home.

Home buying is always a negotiation, but knowing the market can mean starting off with the best offer you can give. Be smart and purchase the home that is best for you!

In a Clearwater real estate transaction (sale), who pays what?

The real estate closing, the end of a real estate transaction, is an exciting and confusing time. Closing costs are a concern whether you are a buyer or a seller of real estate.

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.