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 usually pays for the following:
- Real estate commissions
- Owner’s title insurance policy
- Escrow fee*
- Notary fees
- Liens and encumbrances (if applicable)
- Any Judgements, tax liens, etc. (if applicable)
- Delinquent property taxes, (if applicable)
- Tax prorations (for any taxes unpaid at the time of transfer of title)
- Unpaid Homeowners Association (HOA) proration*
The BUYER usually pays for the following:
- Lender title insurance premiums
- Endorsements
- Recording fees
- Wire fees
- Escrow fee,
- Tax prorations (from date of acquisitions)
- All new loan charges (except those the Lender requires the seller to pay)
- Notary fees.
- Interest on new loan from date of funding to 30days prior to first payment date
- Homeowners Association (HOA) proration*
- Homeowners Association (HOA) transfer fees*
- Inspection fees*
These items are most often negotiated with each purchase contact:
- Home warranty
*These items depend on individual contract negotiations
This article is part of the Home Buyer Guide.
