Who pays what when buying a house? What does the buyer pay when buying a home? When buying a house who pays closing costs? In this video, I discuss what is typically paid by the seller and what is paid by the buyer when buying a home.
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When buying a home who pays for what?
As you likely know, everything in real estate is a negotiation so there is no standard but in this video I discuss what is typical and customary when buying and selling a home.
When buying a house, the buyer is typically responsible for any inspections they want to complete like the home inspection, roof inspection, etc…..These fees are typically out of pocket expenses where most of the other fees can be paid through the closing.
Outside of the inspection fees, buyers are generally only responsible for their portion of the escrow fee as all other fees are customarily paid by the seller. Those fees would generally include title insurance, any transfer taxes, upfront hoa fees, initial termite inspection, NHD reports, home warranty and the list goes on.
Keep in mind that in addition to the fees that we are discussing here there are usually closing costs associated with the loan (mortgage) side of things. That is something that you want to discuss directly with your mortgage professional. While they aren’t directly related to the real estate side of the transaction, they are fees that would be required to be paid at the closing.
Who pays closing costs when you sell a home?
When buying a house, the seller is usually responsible for the majority of the closing costs with regards to the sale of the home. The buyer generally pays for their own inspections and their portion of the escrow fee but the seller is usually responsible for the other fees which include title insurance, any transfer taxes, upfront hoa fees, initial termite inspection, NHD reports, etc…. Depending on what you agreed to as a seller, you could also be responsible for paying the termite section 1 fees and home warranty.
As I mentioned above, each transaction is a bit different so there is nothing in stone with regards to who is responsible for paying what but this is a pretty good guideline to go by.
Are you looking to purchase a home but not sure who should pay closing cost when buying a house? If so, please comment below or contact me directly as I’d love the opportunity to help guide you in the right direction.
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