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:
- Owners Policy of Title Insurance (HomeOwners policy per the REPC’s)
- Tax proration – seller pays from January 1st to the date of closing
- Transaction/processing fees for Sellers Realtor
- Any liens or judgments against the Seller or the property
- HOA’s fees are per contract
- Escrow fees associated with the closing – Seller pays their portion
- Seller paid closing costs if addressed on the contract
The BUYER usually pays for the following:
- Lenders Policy of Title Insurance (usually Extended Lenders Policy)
- Transaction/processing fee for Buyers Realtor
- HOA fees are per contract
- Escrow fees associated with the closing – Buyer pays their portion
- Lender fees unless otherwise stated on contract
This article is part of the Home Buyer Guide.