It’s not fun to hear about fees when buying or selling a home in the Atlanta area, particularly when you’re about to make the biggest investment of your life. But once you sign the contract and start packing boxes, there will be more money you’ll need to shell out as the transaction comes to a close. In this article, we will discuss Fees When Buying or Selling a Home.
Buyer’s fees include costs of appraisal, inspection and loan origination
Most of the extra fees attached to the buyer involve the costs of the required paperwork and making everything official. These costs generally add up to 2 to 7 percent of the total sales price of the house. So what should you expect when you’re buying a home?
- Loan fees and all the extra costs of getting a mortgage: The primary fee here is the loan origination fee, which is the amount you’ll pay to get the loan process in action. It typically costs about 0.5 to 1 percent of the loan amount.
- Title insurance and settlement fees: Title insurance is required to ensure that the seller is the legal owner of the property and that there aren’t any liens against it.
- Appraisal: In order for you to obtain a loan, the lender requires an appraisal, which is an examination that determines the home’s value. This is to keep your loan amount in check, as the lender doesn’t want to loan more than the house is worth.
- Home inspection: Once you make an offer on a house, you’ll want to make sure the house is in good condition. The standard practice is to hire a home inspector to examine the home’s major components, including the foundation, walls, ceilings, heating and cooling unit, plumbing, roof and electrical system.
Seller’s fees can consist of commission, closing costs and legal fees
If you’re selling your house, you’ll see fees in the neighborhood of 4 to 7 percent of the sales price, excluding existing loan payoff. These costs include the following:
- Real estate commission: This is generally 6 percent and customarily is split between the seller’s agent and the buyer’s agent.
- Closing costs: In some cases, the negotiations end with the seller agreeing to pay for the buyer’s closing costs. This will cost about 3 percent of the sales price of the house.
- Various other fees: There are other miscellaneous fees you’ll be responsible for, including notary fees, escrow costs, recording and title search fees.
- Loan payoff and fees: In addition to fees, you’ll need to pay off your existing loan if you have one. If you have a second mortgage or home equity line of credit, you’ll also need to settle those loans before you sign over the house. You might also be subject to prepayment penalties.
If you need additional information about fees when buying or selling a home in the Atlanta area, contact Duffy Realty today.
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