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Old 01-13-2011, 01:56 PM
 
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We have started looking for a home in DE. So far we have looked at homes being built in new communities. One of the sales reps told us that in DE there is more than just commission to pay and it is more costly than buying a home here in NJ. Could someone explain what she might have been talking about?
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Old 01-13-2011, 04:45 PM
 
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Generally, the Seller pays the commission. I generally have a buyer's agency agreement and expect a certain percentage of the sale price as my commission which most of the time coincides with what the Seller is offering ...so the Buyer rarely has to pay .... I don't want to say anything about what the sales rep was up to.
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Old 01-13-2011, 07:54 PM
 
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There are always closing costs when buying a house. We had a house built and the builder gave our realtor a percentage of the sale off the home. I found closing costs similar to costs in Nj when we bought our first house.
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Old 01-14-2011, 07:02 AM
 
Location: Greenville, Delaware
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There's the title transfer fee, a neat hidden tax that DE extracts and which has been very helpful in keeping the State in the black when the real estate market is good (hence a significant problem for the State in the current slumped market). IIRC it's a total of 3% of the sale price and split between buyer and seller so that each pays 1.5%. However, I may not be accurately remembering the exact percentage of the fee.
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Old 01-14-2011, 07:27 AM
 
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Quote:
Originally Posted by doctorjef View Post
There's the title transfer fee, a neat hidden tax that DE extracts and which has been very helpful in keeping the State in the black when the real estate market is good (hence a significant problem for the State in the current slumped market). IIRC it's a total of 3% of the sale price and split between buyer and seller so that each pays 1.5%. However, I may not be accurately remembering the exact percentage of the fee.
Called, Delaware Transfer Tax
3% Total, usually split between buyer/seller, but negotiable and terms must be spelled out in contract

In addition, many municipalities also have a transfer tax, and each town assesses a different percentage, according to sales price. If buying or selling within a town (jurisdiction) check with that entity.

Other fees: termite inspection, well/septic certifications (if applicable) home inspection (if applicable), property survey, recording of documents, title search. And then, pro-rated costs i.e. utilities, gas/oil, real estate taxes. In short, a well written sales contract of sale will clearly state 'who pays what'.
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Old 01-14-2011, 07:58 AM
 
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The point I was trying to make is that the buyer does not end up paying any additional costs compared to NJ. Down payment and closing costs incl. transfer tax - which are prevalent also in NJ where OP comes from - are standard costs and you can add all kinds of desired costs such as points --there is no limit as to what those costs would be. In any case OP would not be signing an agreement without the fair estimate of costs.
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Old 01-14-2011, 08:30 PM
 
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It must have been the transfer tax she was referring to. She was talking about us figuring out how much money we would actually have to purchase the home in DE after selling in NJ. She implied we would have less money available after costs on the real estate in DE than we would if we bought in NJ again. The sales rep said she just wanted us to realize that when planning. I don't ever recall paying such a sizable amount for a transfer. Thank you everyone for responding. I enjoy reading the threads here and learning about the area we are planning to call our home once we retire!
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