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Overview: There are a variety of selling costs when buying property in USA. If the seller goes through a Realtor, then fees will vary depending on the agent, but a typical price would be 3-5% of the overall sales price. People choosing to sell the property themselves, on the internet for example, would clearly save themselves even more money.
Sales/Broker’s Commission:
The seller is typically responsible for paying the total dollar amount of the real estate broker’s sales commission, which is generally a percentage of the home’s selling price.
Escrow Account Deposits
These payments make up the costs involved in setting up an escrow account, which is used to pay taxes, insurance, and other items on a monthly basis. Examples of the fees involved in Escrow Account Deposits are: Hazard Insurance, Mortgage Insurance, City property taxes, County property taxes, Annual assessments, and Aggregate Adjustment.
Title Charges
These costs are used to cover the various services performed by title companies and other title related services. These fees include: Settlement or Closing Fee; Abstract of Title Search; Title Examination; Title Insurance Binder; Document Preparation; Notary Fee; Attorney’s Fees; Title Insurance; Lender’s Title Insurance; and Owner’s Title Insurance.
Government Recording and Transfer Charges
These fees are related to costs accrued to the government recording and transfer section of home selling. Depending on how it was stipulated in the Agreement of Sale, they are either paid by the buyer or seller. These fees include: Recording Fees of the Deed, Mortgage, and Releases; City/County Tax/Stamps fees; and State tax/Stamps fees.
Additional Settlement Charges
These additional fees accrue based on services that are required but do not fall under the other classifications of required settlement costs. Examples of Additional Settlement Charges are: Surveyor’s fee; Pest inspection costs and possibly pest infestation costs; and lead-based paint inspection fees.
Home Warranties
Paid by either the buyer or the seller. Warranties are available on resale homes insuring major household systems against repair or replacement for the buyer's initial year of ownership. Sellers will sometimes offer these warranties as a marketing strategy, or buyers can elect to purchase them at closing.
Pro-rata property taxes
Paid by the seller, the buyer, or both. Most (but not all) jurisdictions assess taxes on real property, which are usually payable at a specified date annually. Since all but a tiny fraction of real estate transactions close on a date other than this one specified annual date, most transactions must include an adjustment to assure that both the seller and the buyer end up paying their share of the annual property tax, proportionate to the percentage of the year that each has ownership of the property. Usually required by institutional/commercial lenders and by the real estate contract.
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