What Do Buyers and Sellers Actually Pay for When Buying and Selling a Home?

Buyers and sellers each incur costs during the course of their transaction. We have a detailed breakdown of each that we’d like to share.

So, what do buyers and sellers actually pay when buying and selling a home? 

Let's begin with the buyers. Please keep in mind these are just estimates and will depend on the lender you use, area you buy and the services and agents you select.

1.) Good news – Buyers, YOU DO NOT PAY ANY COMMISSION – BUYERS AGENT ARE FREE TO THE BUYER – SELLER PAYS.

2.) If you are purchasing a $500,000 home and putting down 20%, your down payment is $100,000.

3.) Closing costs – what are closing costs?  These consist of the following….

• Property Taxes – 6 months of taxes would be $1,084
• Title Charges - $900.00
• Escrow Fees - $1,925.00
• Lender Charges - $2,760.00     
• Home Owner Insurance - $600.00
• Misc Fees and Padding $300.00
  

So the total buyer fees will be approximately $100,000 for loan and $7569.00 (closing costs) for a total of $107,569.00.      

Sellers – Please keep in mind some of the fees can be negotiated. I will use the traditional fees and costs in this example.

1.) Commission – Sellers pay the commission to the Listing Broker (listing agent) and Selling Broker (buyer’s agent).  The brokers get paid and then pay the agents according to their individual agreements.

• $500,000 sales price – Commission (6%) will be $15,000 to the Listing Broker, $15,000 to the Selling Broker

• Title Charges - $2,200.00
• Escrow Fees - $1,225.00
• Lender Fees – 0
• Property Taxes - $2,000.00   

Additional Charges include (depending on the agent and services you use and what is negotiated in the purchase agreement) - Home Warranty for the Buyer, TC fee if any, Hazard Report, Notary and HOA and Doc fees - $1,600.00.

So the total “closing costs” including commission will be approximately $37,025.00

Again, please keep in mind these figures and many of the charges and fees can be negotiated in the purchase agreement and the agents and services you select.  If you have any additional questions, please contact me immediately. 

If you have any questions for us about the costs of buying or selling, give us a call or send us an email. We look forward to hearing from you.

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