Lorraine Ryall
Once you go under contract, whether you are the buyer or the seller, you are going to start accruing costs. If you don’t understand what you may have to pay up front and what fees will be paid at closing, you may have quite a shock when you see the bottom number. Knowing your fees and having a realistic expectation up front will save a lot of grief later in the process.
Fees will vary between lenders, loan type and terms, and title companies.
In next month’s article, I will explain what all the fees on the Closing Statement are, which fees are negotiable, which fees are paid up front and additional fees that may be incurred. If you need to refer back to these estimates, you can find them on my website www.Homes2SellAZ.com under the blog tab.
FOR THE SELLER
The two Sellers Closing Costs Estimates below are based on fees from Security Title. Remember, fees will vary, but this gives you an idea of what fees to expect when selling a home in Mesa (taxes will vary by city).
- These estimates are based on:
- Sales price between $300,000 and $500,000
- Close of escrow date of July 31
- Seller paying the Home Warranty
- Standard Realtor commissions of 6 percent, split 3 percent for listing agent and 3 percent for selling agent
It pays to use an experienced Realtor to help you negotiate fees as soon as you receive an offer and explain what closing costs to expect. Your Realtor can provide you with a closing cost estimate at any time. Once you receive an offer, ask your Realtor to run a closing costs estimate based on the terms of the offer. Knowing what your net will be will help you determine if you want to accept the offer or counter back.
Seller Estimated Closing Costs:
| Sales PRICE | $300,000 | $500,000 |
| Title Policy | $1,513.60 | $2,044.90 |
| Escrow Fee | $683 | $823 |
| Recording Fee | $40 | $40 |
| HOA Disclosure | $300 | $300 |
| Home Warranty | $650 | $650 |
| Taxes | $1,098.16 | $1,829.56 |
| Closing Costs | $4,284.76 | $5,687.46 |
| Buyers Broker Fee | $9,000 | $15,000 |
| Listing Broker Fee | $9,000 | $15,000 |
| Total Closing Costs | $22,284.76 | $35,687.46 |
| NET AT CLOSE | $277,715.24 | $464,312.54 |
FOR THE BUYER
The two Buyers Closing Cost Estimates below are based on fees from Security Title. The biggest difference in fees will be the lender fees. Some may not have many fees at closing as they bundle them into the loan, others may be a lot higher or lower. One lender may not have an origination fee, and another may charge $4,000, so it’s very important for the buyer to understand what fees the lender will charge and how that may affect the mortgage rate.
These estimates give you an idea of what fees may be charged and what to expect when buying a home in Mesa (taxes will vary by city).
These estimates are based on:
- Sales price between $300,000 and $500,000
- Close of escrow date of July 31
- Conventional loan 30-year term
- 10 percent down payment
These estimates do not include the appraisal, inspection and termite fees, which are usually paid up front. In next month’s article, along with an explanation of what the closing cost fees are, there will be information on additional fees a buyer can ask a seller to pay for, including a contribution toward buyers closing costs.
Seller Estimated Closing Costs:
| Sales PRICE | $300,000 | $500,000 |
| Alta Loan Policy | $854.75 | $1,145.30 |
| Escrow Fee | $683 | $823 |
| Recording Fee | $40 | $40 |
| HOA Transfer Fee | $100 | $100 |
| Fixed Closing Costs | $1,677.75 | $2,108.30 |
| 14 Months of Insurance | $1,365 | $2,275 |
| 4 Months of Taxes | $630 | $1,050 |
| 15 days of Interest | $471.58 | $785.96 |
| Prepaid Costs | $2,466.58 | $4,110.96 |
| Origination Fee | $1,000 | $1,500 |
| Processing Fee | $350 | $350 |
| Tax Service | $100 | $100 |
| Doc Prep | $350 | $350 |
| Underwriting | $200 | $200 |
| Flood Cert | $40 | $40 |
| Credit Report | $60 | $60 |
| Endorsement | $75 | $75 |
| CPL Fee | $25 | $25 |
| Lender Closing Costs | $2,200 | $2,700 |
| Total Closing Costs | $6,973.16 | $10,761.92 |
If you are thinking of buying or selling a home and would like me to run an Estimate Closing Cost Sheet for you to see what your bottom number will be, or have any questions on fees and the closing process, please don’t hesitate to contact me.
Call me any time, and I will be happy to answer all your real estate questions. Please contact me at Lorraine@Homes2SellAZ.com, or call (602) 571-6799. Visit my website at Homes2SellAZ.com.