Buying a home is not as simple as negotiating a price with the seller.
There are many other costs, including those associated with the loans, appraisals, and insurance. Some are one-time fees, while others recur over the life of the loan and it’s important to understand why.
Depending on where you live, there are customary practices for who pays what.
The SELLER can generally be expected to pay for:
- Real estate commission
- Owner’s title insurance policy*
- Escrow fee*
- Notary fees
- Liens and encumbrances (if applicable)
- Any judgments, tax liens, etc. (if applicable)
- Recording charges *
- Delinquent property taxes (if applicable)
- Tax prorations (for any taxes unpaid at the time of transfer of title)
- Unpaid Homeowners Association dues*
- Homeowners Association (HOA) proration *
The BUYER can generally be expected to pay for:
- Lender title insurance premiums*
- Escrow fee*
- All new loan charges (except those the Lender requires the seller to pay)
- Notary fees
- Recording charges *
- Interest on new loan from date of funding to 30 days prior to first payment date
- Tax prorations (from date of acquisition)
- Homeowners Association (HOA) proration*
- Homeowners Association (HOA) transfer fees*
- Inspection fees* (roof, geological, pest, property inspection, etc.)
- Fire insurance premium for first year
These items are most often negotiated with each purchase contract
- Home warranty
- Any bonds or assessments
*These items depend on individual contract negotiations
This article is part of the Home Buyer Guide.
