There are a lot of additional costs that come with purchasing or selling a home and it is best to be aware of those upfront. Buyers need to know what they can afford to purchase and sellers will want to calculate how much money they will walk away with after the sale of their property.

Although the question of who pays for what is negotiable between the buyer and seller, the following is a standard breakdown of how responsibility for costs is typically divided. Closing costs are the various charges made by the lender, the title company, real estate agents, and other service providers necessary to complete a transaction. It’s important to remember, this list is a general guideline of charges and may not be wholly inclusive for your transaction.

The Seller Customarily Pays:

  • Real estate commission
  • County transfer tax
  • Document preparation for deed
  • Documentary transfer tax (amount is dependent upon sales price)
  • Payoff of all loans against the property
  • Interest accrued on loans being paid off, reconveyance fees and pre-payment penalties
  • Home warranty (if specified in contract) for the 1st year
  • Any judgment or tax liens against seller
  • Property tax proration
  • Unpaid homeowner’s dues 
  • Bonds or assessments
  • Delinquent taxes
  • Notary fees and recording fees
  • Third party Natural Hazard Disclosure Statement & California Tax Disclosure Report
  • Pre-sale inspection fees
  • HOA documents and transfer fees
  • Energy & Water Conservation inspections & recording
  • City transfer tax if applicable

The Buyer Customarily Pays:

  • Notary fees
  • Title and Escrow fees
  • Additional property inspections and contractor’s fees
  • All new loan charges (points, appraisal, document processing fees, etc.)
  • Interest on new loan from date of funding to 30 days prior to the 1st payment date
  • Homeowner’s insurance for 1st year upfront
  • Earthquake insurance (optional)
  • Private mortgage insurance if required by lender
  • Private mortgage insurance impound account (1 year) if required by lender
  • Property tax impound account if required by lender
  • Title Insurance

Are you thinking about buying or selling and would like a personal estimate of costs related to your property? Contact us today for a free net sheet and cash to close estimate! At Arrive Real Estate Group, we have the integrity, clarity and results to help you achieve your real estate goals. Discover the difference with Arrive Real Estate Group as we remain committed to providing our clients with the best service customized to their needs.

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