CLOSING COSTS, FEES AND CHARGES

 

The major cost of purchasing a property or home in Palm Coast, Florida (beside the purchase price) for the Buyer is the cost of borrowing other people’s money; AKA a mortgage loan and for the Seller this would be sales commission.  If you are paying cash or if you are the Seller going the route of do-it-yourself, your costs are typically very nominal in the scheme of things.  However there are fees that is considered to be typical or customary to one parity over the other.

Like purchase price everything is negotiable

realestatecostsYou can ask the other party of the real estate transaction to pay any fee that is customarily considered “your end of the deal.”   When applablical, I like to negoshiate an offer that seems fair to the buyer but then make up for the loss in removing some closing fees for the seller on the back-end.  It is the same-difference; settling on a sale price of $100,000 and the seller having to pay $2,000 (in their traditional) closing fees or agreeing to a price of $98,000 and requiring the buyer to pay $2,000 in costs.   The advantage is psychological to the buyer – they think they are paying less for your home because the focus is so heavily placed on the offer amount and not closing costs that come at the end of the deal.

It has been from my experience that the buyer’s agent tells their client an approximate (and often more conservative figure); downplaying these costs in order to more easily cement a deal.   It’s easy to do too, because the buyer sees the purchase price upfront and center on a contract but only sees a check mark for fees somewhere hidden in the contract’s verbiage several pages in.

It’s the old buy now pay later mind set and it works! I love it when I am able to  negotiate a sales price that both parties are happy with and save a seller a lot of money (by helping them) to avoid paying some backend fees that is usually not discussed during negotiation but is part of the contract.

COSTS CUSTOMARILY PAID BY SELLER:

  • Sales commission
  • Documentary stamp taxes and surtax on deed, if any
  • HOA/Condominium Association estoppel fees
  • Owner’s Policy and Charges
  • Recording and other fees needed to cure title
  • Title search charges
  • Seller’s attorneys’ fees (if hiring the services of a lawyer; not a Florida requirement to close property)

COSTS CUSTOMARILY PAID BY BUYER:

  • Taxes and recording fees on notes and mortgages
  • Loan expenses
  • Recording fees for deed and financing statements
  • Appraisal fees
  • Owner’s Policy and Charges
  • Buyer’s Inspections; Home, termite, etc.
  • Survey (and elevation certification, if required)
  • Buyer’s attorneys’ fees (if hiring the services of a lawyer; not a Florida requirement to close property)
  • Lender’s title policy and endorsements
  • All property related insurance
  • HOA/Condominium Association application/transfer fees (if applicable)
  • Owner’s Policy Premium

How To Save Money On Closing Costs

Buyer’s should always negotiate closing costs with their lender this is #1;  a lender must disclose fees upfront before applying for a loan – with this disclosure in hand, shop around for the best deal.  If you have cash in hand, you can avoid the lion-share of your closing costs however seek the advice of a financial advisor to determine if displacing a large sum of money into a home versus other investments that make a more sound financially decision for you.

Sellers have an easy way to save on their largest closing cost; ask your agent to reduce the commission they charge.  Now for my shameless plug; Better Buy Realty lists homes for no more than four percent (4%).  A couple of percentage points here, can save you thousands.  Selecting the right title company can also help; title policies are federally mandated however the “trumped up fees” can be negotiable.  I can help you out here, too.

Regardless if you are a buyer or seller, negotiating the other party to pay a particular closing cost(s) that is customarily yours – is always the best way to instantly save.  I know all the idiosyncrasies of negotiating a contract and not just price; as a real estate broker I have taught many top producers how to be proficient at this I certainly can represent your best interest.  If you are a homeowner and thinking of selling your home, I sincerely hope that you contact me, I would love to meet with you personally and tell you all about my wonderful company Better Buy Realty, how I can help you save on your biggest closing cost – sales commission.

Palm Coast Real Estate Company | Better Buy Realty
No Gimmicks. Just Results.