The purchase price of this home is $490,000 - the amount of the new loan is $392,000, so the purchaser must bring $98,000 to the closing? NO, the buyer must bring $101,758.30 - there are $13,758.30 in closing costs to the buyer, less a $10,000 credit from the seller according to the negotiated contract. This is obviously the sign of a buyers market - very few of the contracts we see don't have some sort of seller credit.
The selling price of $490,000 less the mortgage payoff of $319,048.56 gives the seller $170,951.44. No, actually it gives the seller $124,425.97 - it cost the seller $46,525.47 to sell this house. The 9.47% of the purchase price it cost the seller could have been worse - the seller is a licensed real estate agent and therefore paid no commission on the selling side!
None of these figures take into consideration that there was also a $4,096.40 fee paid by the mortgage company to the mortgage broker - that was paid outside of the closing - a small amount considering the amount of interest the borrower will pay over the life of the loan.
So, let's break this down a little:
On the Buyer side:
$295 - Administrative Fee to Real Estate Company
$325 - Appraisal Fee
$20 - Credit Report
$525 - Commitment Fee to Mortgage Company
$79 - Tax Service Fee
$18 - Flood Certification
$7.50 - Document Delivery Fee
$345 - Processing Fee to Mortgage Broker
$13.30 - Verification of Employment Fee to Mortgage Broker
$4.95 - Mers Fee to Mortgage Company (so they can track the loan if it sells)
$224.76 - Insurance for 3 months
$1,203 - County Taxes for 3 months
$2,458.73 - Reimburse Seller for county Taxes prepaid through 7/1/08
$313.06 - Interest for 3 days (from closing to end of month)
$195 - Settlement Fees to Settlement Agent
$140 - Title Search
$30 - Title Insurance Binder
$25 - Notary Fees
$909 - Lender Title Insurance
$1,030 - Owner Title Insurance
$75 - Courier / Copy Charges
$4 - Wire Fee
$80 - Recording Fees
$2,450 - City/County Tax
$1,225 - State Transfer Tax
$1,518 - State Recordation Tax
$180 - Survey
$65 - Termite Inspection
On to the Seller's Side of the Transaction:
$7,804.30 - State Withholding Tax
$300 - Water Escrow pending final bill
$14,700 - Commission to Buyer's Agent
$5,000 - Bonus to Buyer's Agent
$5,052.90 - 2007/2008 RE Taxes
$195 - Settlement Company Fees
$15 - Notary Fees
$125 - Filing of State Withholding
$20 - Courier / Copy Charges
$125 - Payoff Service Fee
$4 - Wire Fee
$2,450 - City/County Tax
$1,225 - State Transfer Tax
$1,518 - State Recordation Tax
$450 - Homeowners Warranty
Any Questions or Comments? This is what it cost both the buyer and the seller to transfer ownership of this house!
BE A SAVVY BUYER OR SELLER - MAKE SURE YOU KNOW WHAT THESE COSTS ARE AND MAKE SURE YOU QUESTION EACH AND EVERY ONE!
More Later Today!
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