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Few sellers give enough thought to closing costs. In the Glendale real estate market, closing costs refer to fees, taxes, and any other costs necessary to finalize a real estate transaction. They are normally a required cost and cannot be avoided in the transaction.
You may have to ask your agent about what costs you will have to pay and the ones to be paid by the buyer, when listing your home. This information is essential when considering offers, as the closing costs determine what your net profit is when you sell your house. When the market is hot, sellers may take advantage and insist that buyers pay a large portion of the costs. However, where the market isn't in the greatest condition, the sellers may negotiate with the buyers to either pay a portion of the closing costs or have the buyers pay nothing at all.
Here are some examples of the typical closing costs faced by those listing Glendale homes for sale:
Escrow Fee
This cost is also referred to as an attorney fee for many out of state residents, and is normally split between the seller and the buyer. In some states third party escrow companies are used, others use attorneys. Some of the firms that typically get involved and assist the escrow company with closings include lenders, title representatives, brokers, and real estate agents. In Los Angeles, the majority of transactions are done through an escrow company. The escrow companies main purpose is to ensure all contracts have been executed properly, all contingencies to the agreement have been completed, and many other things that include the transfer of real estate from one party to another.
Title insurance
There are two types of title insurance policies that have to be initiated before finalizing a transaction on Glendale homes for sale i.e. the lender's policy and the owner's policy. A title firm or an attorney researches the title to ensure that there are no liens against the property. The policies secure the lender and the new owner for the property's full value. The seller usually pays for the owner's policy with the buyer paying for the lender's policy.
Transfer/Documentary taxes
These are costs payable to the state, county, city or a combination depending on the applicable regulations. Through these fees, also known as re-conveyance tax, the government agencies get a share of the transaction.
Recording cost
This is the fee paid to the county or local authority for recording the deed showing the property's ownership.
Brokerage fee
This is the amount the seller of a property pays the brokerage firm or a Glendale real estate agent for selling the property. It can be a percentage of the selling price or as per the listing agreement.
Pest inspection fees
This fee is usually catered for by the seller who may also be responsible for making any repairs on areas damaged by fungus, ants, termites and other pests. However, these costs can always be negotiated and largely depend on whether the real estate market at a specific time is on the buyer's or seller's side.
Buyers pay most of the closing costs that are normally tied to their mortgages. On the other hand, sellers pay some of the recurring costs that they are personally responsible for which include, mortgage interest, property taxes, hazard insurance and homeowner association dues. The seller should pay these costs till the closing date with the buyer starting to pay from the closing date forward.
You may have to ask your agent about what costs you will have to pay and the ones to be paid by the buyer, when listing your home. This information is essential when considering offers, as the closing costs determine what your net profit is when you sell your house. When the market is hot, sellers may take advantage and insist that buyers pay a large portion of the costs. However, where the market isn't in the greatest condition, the sellers may negotiate with the buyers to either pay a portion of the closing costs or have the buyers pay nothing at all.
Here are some examples of the typical closing costs faced by those listing Glendale homes for sale:
Escrow Fee
This cost is also referred to as an attorney fee for many out of state residents, and is normally split between the seller and the buyer. In some states third party escrow companies are used, others use attorneys. Some of the firms that typically get involved and assist the escrow company with closings include lenders, title representatives, brokers, and real estate agents. In Los Angeles, the majority of transactions are done through an escrow company. The escrow companies main purpose is to ensure all contracts have been executed properly, all contingencies to the agreement have been completed, and many other things that include the transfer of real estate from one party to another.
Title insurance
There are two types of title insurance policies that have to be initiated before finalizing a transaction on Glendale homes for sale i.e. the lender's policy and the owner's policy. A title firm or an attorney researches the title to ensure that there are no liens against the property. The policies secure the lender and the new owner for the property's full value. The seller usually pays for the owner's policy with the buyer paying for the lender's policy.
Transfer/Documentary taxes
These are costs payable to the state, county, city or a combination depending on the applicable regulations. Through these fees, also known as re-conveyance tax, the government agencies get a share of the transaction.
Recording cost
This is the fee paid to the county or local authority for recording the deed showing the property's ownership.
Brokerage fee
This is the amount the seller of a property pays the brokerage firm or a Glendale real estate agent for selling the property. It can be a percentage of the selling price or as per the listing agreement.
Pest inspection fees
This fee is usually catered for by the seller who may also be responsible for making any repairs on areas damaged by fungus, ants, termites and other pests. However, these costs can always be negotiated and largely depend on whether the real estate market at a specific time is on the buyer's or seller's side.
Buyers pay most of the closing costs that are normally tied to their mortgages. On the other hand, sellers pay some of the recurring costs that they are personally responsible for which include, mortgage interest, property taxes, hazard insurance and homeowner association dues. The seller should pay these costs till the closing date with the buyer starting to pay from the closing date forward.
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