- Broker’s Commission – The standard fee is 6% of the sales price, 3% for my work and 3% for the other agent.
- Termite Inspection – The Seller pays on VA Loans.
- Property Taxes – Property taxes are paid in April and October. The title company will collect a pro-rated amount for taxes through closing.
- Home Warranty – Home warranty policies offer protection for one year after the sale of a home. This fee is also negotiable, but Buyers often ask the Sellers to pay for it. Basic home warranty coverage starts around $350 with optional coverage for pools, appliances, and premium coverage at an additional cost. Make sure to evaluate each protection policy as the terms and conditions vary from policy to policy and company to company.
- Escrow Fees – This is the title company’s fee for handling the sale. This fee is split 50/50 by Buyer and Seller.
- Owner’s Title Policy – Insures good, clear title is being given to the new owners. The cost will vary but is based on the price of the house and is usually about 0.5% of the home purchase price.
- Prepaid Loan Interest – The interest due on your loan is paid in arrears every day until the end of the month in which the closing is held. If you close on the 15th, you will owe 15 days of prepaid interest. If you close on the 29th, you might only have a day or two. That is why closing escrow later in the month is the best way to minimize prepaid expenses. The only exception in an FHA Loan; the seller must pay 30 days of interest within the month of the payoff.
- Homeowner’s Association – The transfer fee can be negotiated and paid by either party. Most neighborhoods have a transfer fee of $300 to $500. Some HOAs have Working Capital Fees and Enhancement Fees. These are fees the HOA receives up front for reserves.Any inspection, certification or resale disclosure statement fee charged by the HOA for the cost of providing the resale information required by law shall be paid by the Seller.
- Buyer Assistance – Some Buyers ask the Seller to help pay 3% of their closing costs, and most Sellers will cooperate, particularly if the Buyer’s offer is close to the full asking price.
- Misc. Fees – Such as recording fee, notary, courier, reconveyance/tracking fee to ensure the bank releases your note, etc. Fees tend to be less than $300 all together.