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Your full service Realtor for Savannah, Ga., Savannah Ga homes, Savannah condos and townhomes as well as Pooler, Richmond Hill, Rincon, Tybee Island and surrounding areas.

Tom Tolbert - Realtor

Thomas Tolbert

Office (912) 352-1222

Direct (912) 308-6839

E-Mail Me

Coldwell Banker Platinum Partners Real Estate

Abercorn / Midtown

6349 Abercorn St. Savannah, Ga. 31405

Closing Costs

The bundle of fees associated with the buying or selling real estate are called closing costs. Certain fees are automatically assigned to either the buyer or the seller; other costs are either negotiable or dictated by local custom.

Buyer closing costs

When a buyer applies for a loan, lenders are required to provide them with a good-faith estimate of their closing costs. The fees vary according to several factors, including the type of loan they applied for and the terms of the purchase agreement. Likewise, some of the closing costs, especially those associated with the loan application, are actually paid in advance. Some typical buyer closing costs include:

• The down payment

• Loan fees (points, application fee, credit report)

• Prepaid interest

• Inspection fees

• Appraisal

• Mortgage insurance (typically 1 years premium plus an escrow of 2 months)

• Hazard insurance (typically 1 years premium plus an escrow of 2 months)

• Title insurance

• Documentary stamps on the note

In addition to the sales price, buyers and sellers frequently include closing costs in their negotiations. This can be for both major and minor fees. For example, if a buyer is particularly nervous about the condition of the plumbing, the seller may agree to pay for the house inspection.

Likewise, a buyer may want to save on up-front expenditures, and so agree to pay the seller's full asking price in return for the seller paying all the allowable closing costs. There's no right or wrong way to negotiate closing costs; just be sure all the terms are written down on the purchase agreement.

Prorations

At the closing, certain costs are often prorated (or distributed) between buyer and seller. The most common prorations are for property taxes. This is because property taxes are typically paid at the end of the year for which they were assessed.

Thus, if a house is sold in June, the sellers will have lived in the house for half the year, but the bill for the taxes won't come due until the following year! To make this situation more equitable, the taxes are prorated. In this example, the sellers will credit the buyers for half the taxes at closing.

This is just a general guide to closing costs.

Remember, as a real estate agent agent representing the buyer, I can work hard on behalf of the buyer to get the seller to agree to pay all or most of the closing costs for the buyer. If you go through the listing agent to make an offer, remember, if it is the listing agent's duty to get the best price for his or her client, the seller, then you need someone on your side to negotiate on your behalf as the buyer to get you the best terms.