Closing cost for selling a home?

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When I bought my home 3 years ago in California, I paid the closing cost at that time. And now, I am selling it, but my agent said that I will have to pay for closing cost again, he said that whenever I sell or buy, this fee will apply to both seller and buyer. I thought that only buyer need to pay for closing cost unless the seller offer to pay for it? Is my agent correct?

11 Comments
  1. Reply
    laydenirvine
    August 21, 2011 at 9:35 am

    no ur agent sounds wrong…. only one person had to pay them….
    I’d ask a second opinion… looks like hes trying to pocket some cash off u…..

  2. Reply
    bassmonkey1969
    August 21, 2011 at 10:03 am

    Different states have different ways of doing things. Usually the Seller pays the title costs and the buyes pays the doc stamps on the note and the intangible tax ( In FL anyway ). so yes you would have paid some closing costs when you bought, but now you will have to pay the other side of the closing costs such as the closing agents fees and the doc stamps on the deed.

  3. Reply
    She She
    August 21, 2011 at 10:05 am

    Oh for goodness sakes!!….Your agent is correct!..The seller has fees like the commission, 1/2 of the closing fee and 1/2 of the closing costs…Every time you buy or sell there is a new loan and a new set of documents and basically new everything..You don’t think people actually do this stuff for free the rest of your natural life do you?..Leave this stuff up to your agent obviously you have no idea what your doing!..ss

    Buyer costs include stuff like the cost of inspections and the cost of obtaining their new loan and 1/2 the title insurance anc 1/2 the closing fee..

    You should not be questioning someone you have agreed to pay so much money to?…You just sound kind of strange to me…Glad your not one of my clients 🙂

  4. Reply
    Ron J.
    August 21, 2011 at 10:06 am

    Cost for selling a house are usually greater than the costs for buying. Realtors usually charge a percentage of the sale price. Depends of the realtor but that could be be anywhere from 4-10%

  5. Reply
    courtneyscottusa
    August 21, 2011 at 10:14 am

    Yes, I believe so. But.. I’m not sure about the laws in your area. I’m in Colorado and it is very negotiable on who will pay closing (Buyer/Seller) As it is a buyers market right now, with interest rates at their all time lows, it is easier now, to get the seller to pay the closing for you, out of desperation to sell their home and get it off the market. This applies to my state. You should see if it does for yours as well.

  6. Reply
    mighty_whitey
    August 21, 2011 at 10:59 am

    Closing costs are made up of many fees. When you bought your home, you paid some, but not all of them. When you are the seller, you are responsible for certain fees which the buyer is not: for example, the sales commissions for the real estate agents are your responsibility. As a buyer, you should try and negotiate that the seller pay for as many of your closing costs as you can. As the seller you have less leverage, and should look at the profit you made on the sale as the buyer helping to pay your share of the closing costs. However, your agent should be negotiating with the buyer’s agent on your behalf to keep your costs as low as possible.

  7. Reply
    lovejunk
    August 21, 2011 at 11:42 am

    Closing cost is a term that applies to the costs associated with selling or buying a home. They are paid every time you buy or sell a property.

    There are the seller’s closing costs and there are the buyer’s costs. Sometimes these costs become part of the negotiations, usually in the form of the seller paying some of the buyer’s costs to defray the cost of the home, especially if it is a first time buyer in a lower priced home, since sometimes these buyer’s are cash poor.

    Also, sometimes we lump things into the category of closing costs that aren’t technically that. For example, some people consider the prorated taxes or a survey, or the agents fee closing costs. It is costs associated with selling or buying, but not technically closing costs.

    At closing, you will have to sign a form detailing all costs. Go back and find this from when you bought this house 3 years ago. It is a form with lots of little lines and columns. We call it a settlement or HUD. You should keep these forever, and you would have needed it for taxes. It should say HUD Settlement or something similar at the top and you and the seller and the agents/attorneys will have signed it.

    You will see that the seller has a side and the buyer has a side with all costs listed. Your Realtor or a title agent can help you understand it.

  8. Reply
    AA
    August 21, 2011 at 12:02 pm

    Your seller is wrong. Closing costs are negotiable just like everything else.
    the problem is, that you bought during a sellers peak, and you are selling during a buyers peak…which means that you might have to entice the buyer to get your place, by paying closing costs…..recording the deed and the balance of taxes are the buyers responsability…if you dont think asking the buyer to pay these will hurt the chance of a sale, tell your realtor, no.

  9. Reply
    Bobbie
    August 21, 2011 at 12:07 pm

    no way! you don’t pay the closing cost when you sell.the buyer does.she is wrong.you really should check into that.call up another real estate agent and just say you have a quistion.they would be happy to answer you.

  10. Reply
    Taylor T
    August 21, 2011 at 12:38 pm

    First off the only reason you as the buyer should have paid closing cost is if you could not have qualified for an 100% loan and even if you qualified for 100% sometimes your closing cost exceed what the sellers are willing to pay and the remainder you will have to pay yourself. if you only qualified for lets say a 95% loan and the house was $ 200,000 the seller would pay between 3-6 percent closing cost on 180,000 which is 95% of 200,000 and the other 5 percent the buyer would have to pay. As the buyer to sell your home you will have to pay between 3% – 6% closing cost to sell your home

  11. Reply
    W. E
    August 21, 2011 at 1:37 pm

    SELLER’S Closing Costs (All of these depend on your State and the Title Company being used)

    Certain costs are associated with selling a property. These costs are your responsibility, and as part of the process which leads to a successful closing, your listing agent will discuss them with you.

    To help you prepare to sell your property, take a look at what you will be expected to provide:

    Broker’s Commission

    Title Insurance
    To provide the buyer with a clear title policy. The cost is approximately $ 3.75 per $ 1,000 of the purchase price (an additional $ 1 per $ 1000 between $ 100,000 and $ 500,000; receive a quote for homes over $ 500,000). Depending on State.

    Certificate of Zoning Compliance
    Verifies how many dwelling units are allowed in the structure (required for dwellings up to 5-flats) $ 50.

    Document Recording Release Fees
    Based on the number of pages of documents; a minimal charge.

    State and County Transfer Stamps
    $ 1.50 per $ 1,000 of the purchase price.

    Attorney’s Fees
    Averages $ 400-$ 700 (or hourly rate.)

    Escrow Charges
    Only if escrow is established.

    Paid Water Bill Certificate
    $ 10

    Tax Credit
    Prorated to the buyer to pay current real estate taxes not due until the following year.

    You must also be able to provide
    Current Title Policy
    Survey (if applicable)
    Tax Bill From Previous Year
    Condominium Declaration, By Laws and Operating Budget (if applicable)
    Property Disclosure
    Energy Disclosure
    Lead Paint Disclosure
    These are estimated costs

    BUYER’s Closing Costs -Avoid unwelcome surprises by knowing what costs you are responsible for either at the closing or before. Some may be rolled into your monthly payments, and some may vary, so check with your mortgage company. Your costs may include:

    Attorney’s Fees
    $ 400 – $ 700 (or hourly rates)

    Property Inspection (Optional)
    $ 250- $ 400

    Lead Paint Inspection (Optional)
    $ 200- $ 350

    Loan Application or Appraisal Fee
    $ 250 -$ 400 (More for higher priced properties)

    Closing Points or Loan Origination Fee
    A percentage of the loan which is a one-time charge by the lender at the time of closing. Each point is 1%

    Private Mortgage Insurance (PMI)
    Required by lender if loan amount exceeds 80% of purchase price; calculated at approximately .52% of loan amount annually; approximately 3 months of this amount is due at closing. Higher premiums required if loan-to-value ratio is greater than 90%.

    Underwriting Fee
    $ 175- $ 250 (Charged by lender)

    Processing or Administrative Fee
    $ 150- $ 200 Paid to mortgage broker to process loan and reimburse miscellaneous out-of-pocket expenses.

    Document Preparation or Recording Fee
    $ 100- $ 150. Charged by lender to prepare loan documents.

    Lender’s Title Insurance Policy
    $ 150- $ 400. Required by lender and paid to the title company to insure lender’s interest in property. It is paid as a flat fee, plus endorsements, when issued with owner’s policy.

    Settlement or Escrow Closing Fee
    $ 175. Paid to title company to act as lender’s agent in handling closing, for up to $ 100,000 of purchase price. $ .50 per each $ 1000 of additional cost.

    Homeowner’s Insurance
    Condos—Certificate of Insurance from association’s insurance carrier.
    Other Properties—Buyer must obtain individual homeowner’s insurance.

    Tax Reserve Fund
    A minimum of two months of estimated taxes put into escrow if required by lender.
    These are estimated costs

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