Regardless if you’re buying or selling a home, closing costs will always be part of the real estate transaction. It is will depend, however, on how you handle the situation. There are instances where the buyer shoulders the closing costs or the other way around. What’s constant though is that you would need the assistance of a real estate agent to sort out all the details regarding the transaction.
Closing costs vary per state. There are different costs associated due to laws and practices in certain regions. Now, if you’re not familiar with all of these, it’s suggested to have a word with our realtor or you could read through some of the details as follows:
In real estate transactions, it’s always best to get the opinion or a realtor.
Real Estate Closing Costs
Transfer tax – this is often referred to as real estate transfer tax or deed transfer tax. This tax is basically for the transfer of ownership of the property. The buyer or the seller could pay for this tax. It depends on the outcome of the negotiation who ends up paying for this tax.
Recording fee – this fee could either be imposed by the local government or state. This fee is required for the processing of the deed and putting it in public records. Again, this fee can either be paid by the seller or buyer. It is determined by the outcome of the negotiations between the seller, the buyer, and the real estate agent.
Title search and insurance – having title insurance protects you from future claims to the property. Basically, certain property is open for any claims unless there is title insurance in place. Getting this means having to pay for a title search. This is normally shouldered by the buyer.
Settlement fee – depending on your choice, a certain entity will take care of the transfer of funds. This process will require a fee and can be the responsibility of either the buyer or seller. However, the decision entirely depends on the negotiation.
Loan application fee – this is a small fee that lenders impose on the buyer to ensure that they are indeed serious with the loan.
Loan origination fee – when taking out a loan, you go through several checks. This includes credit checks and similar processes. The buyer will need to pay for a loan origination fee.
Points – paying in points is basically an add-on to the overall closing fees to reduce the interest rate for the loan. This is totally optional for the buyer. It could lower the interest rate but you will pay more during the time of closing. You can discuss this matter with your real estate agent in Myrtle Beach to get more information.
Home inspection – before a deal could be reached and closed, a proper home inspection is suggested. This will determine the overall quality of the house. This fee will be covered by the buyer and the fee will vary depending on how big the house is.
Appraisal – before a final price could be handed out, an appraisal first needs to be made. This is to be shouldered by the buyer. The lender would normally give out referrals but you could also find your own appraisal company.
Survey – a survey is basically the process where the actual size of the property is measured. This includes determining the start and endpoint of the property. The fees will be shouldered by the buyer.
Homeowner’s association fee – if you are buying a property that is being handled by a homeowner’s association, you may be required to join and pay fees. This is on top of other monthly or annual dues.
Existing liens – when a lien is found within the title search, the seller must first settle these issues before ownership could be transferred to the buyer of the property.
Real estate brokerage commissions – your realtor will undoubtedly get a portion of the sale as their commission. The amount of commission will depend on how much they have agreed upon with the seller of the property. Realtors like Full Potential Real Estate, LLC will ask for certain percentages of the total sale as their commission.
Attorney’s fees – in South Carolina, attorneys oversee the appraisal, title search, and other assessments. Basically, the buyer and the seller will both pay their respective attorneys for fees.
Mortgage payoff penalty – any penalties from an existing mortgage must be paid off by the seller before closing a deal. The seller must take this action before proceeding to any other parts of the deal.
Looking for a good realtor to help you out with buying or selling a property? Call Full Potential Real Estate, LLC today!
Full Potential Real Estate, LLC
4201 Carolina Exchange Drive Suite 202
Myrtle Beach, SC 29579