Your final closing costs will depend on many factors. The type of financing that the buyer will use (FHA, VA, Conventional, Owner Will Carry, Assumption), concessions made to the buyer to pay any or all of their closing costs, the time of the month that you close, some of the closing costs are negotiable (buyer or seller can pay), some of the closing costs may be subject to federal law as to who pays. An easy rule of thumb to keep in mind is that if buyer and seller pay their own normal closing costs, then your seller costs will be approximately 1.5-2.5% of the selling price. TYPICAL SELLERS CLOSING COSTS Recording Fee - Paid to the County Recorder to record the new deed. Escrow Fee - Charged by the Title Company to oversee the escrow process. This fee is based on purchase price. Legal Fee - Charged by the Title Company. Tax Service - Charged by the County to change records. Title Doc Prep Fee - Charged by the Title Company. Title Insurance - Charged by Title Company to give clear title to buyer. This fee is based on purchase price. Nevada Transfer Tax - Paid to the State. Fee is $2.50 per $1000 of purchase price. Appraisal Fee - Ordered by the lending institution that is underwriting the mortgage. Usually paid to the appraisal company at the time the appraisal is performed. Pest Inspection - Required on FHA loans when the property is at least 2 years old and on all VA loans. Loan Processing/Application Fee - Payable by the seller to the lender when the buyer is getting an FHA Mortgage or a VA Mortgage. Mortgage Prepayment Penalties - Payable to your lender if that was part of your mortgage agreement. Reconveyance Fee - Payable to your lender to close out your mortgage. Home Warranty Plan - Payable to a Home Warranty Company if you have offered this option. Homeowner's Association Transfer Fee - If you are part of a Homeowner Association. Flood Certifcation Fee - To ensure to the lender and the buyer that the property is not in a Flood Zone area. Septic Tank Inspection - Usually required by the lender if you are not hooked into the County sewer system. Each sales contract is different and each lending program has different requirements. Some closing costs will always be paid by the seller or always by the buyer. Some closing costs are customarily paid by the buyer or seller by agreement. Some Title Companies have discounted rates for escrow fees or title insurance based on different criteria. It is essential to the negotiating process that you know all the closing costs that you will be responsible for and how much that total amount will be. Before we write an offer or accept an offer on a property, we will write out a Net Sheet to see what the closing costs will be for the seller or the buyer. Click on Net Sheet to see a sample. There are other factors to consider when determining your bottom line or net. If you have an outstanding mortgage, you will be required to pay interest for the total days of the month prior to closing. You are always making mortgage payments in arrears. If you closed on the 20th of the month, you would owe 20 days interest. If you have an FHA loan, you will be required to pay the entire month of interest regardless of closing day. On the plus side, you will be reimbursed for any property taxes, sewer payments, homeowners hazard insurance, or association dues that you have paid ahead. If you have an FHA Mortgage and prepaid MIP (Mortgage Insurance Premium), you could be due for a refund up to 84 months after initiating that mortgage. |
How Much Are My Closing Costs? |
Jeannine Cutter (702) 283-8882 David Berg (702) 281-5827 |
