Cost of closing on a new home

[LifeIsGood01]

Originally Posted by nhkev

thanks for the correction.. I shouldn't do math before coffee in the morning.

I think I was wrong too. it's 0.7%

.007 x 1000= 7

[FlaLove]

Originally Posted by Mr Cape Coral

Many people think they can walk in to a builder model and will find their best interest is taken care of.
The builders rep, or sales person, represents the builder. The contract is in favor of the builder.
It is always advisable to have your own agent represent you as you deal with the builder. It is not a cost to the buyer.
It is also advisable to have a Real Estate Attorney review the contract with you.

When you sign a contract with the builder you should have your bottom line cost. The builder then cannot add on when "something comes up".
You could contact a title company and ask them to work up a closing cost estimate, this is something the buyer should be able to provide to you.
On a regular, non builder, sale, you can roughly estimate 8% closing costs, this includes title, filings, agent commissions, etc.

A realtor advising you to use a realtor, hah! I 100% agree about having a real estate attorney review the contract though. I can't see how much value a realtor is going to have other than another hand in the pot. While it may not be a direct cost to the buyer, it certainly will be a cost paid for by the buyer ultimately. Plus, many (not all) realtors would have more interest in pushing the transaction along, rather than the client's interests. After all, they are a sales person, just like the one representing the builder. I always prefer a real estate attorney. You know you'll get sound advice in your best interest for likely the biggest purchase of your life.

[Living the Florida Dream]

Originally Posted by FlaLove

A realtor advising you to use a realtor, hah! I 100% agree about having a real estate attorney review the contract though. I can't see how much value a realtor is going to have other than another hand in the pot. While it may not be a direct cost to the buyer, it certainly will be a cost paid for by the buyer ultimately. Plus, many (not all) realtors would have more interest in pushing the transaction along, rather than the client's interests. After all, they are a sales person, just like the one representing the builder. I always prefer a real estate attorney. You know you'll get sound advice in your best interest for likely the biggest purchase of your life.

Be careful. A real estate lawyer might knoiw the legalities of the contract, but does not necessarily know the real estate market. Will a real estate lawyer give a market analysyis to tell you if what you are paying is even in the ballpark of what the propeerty is worth? Has one ever given you a market analysis? Have they? No, they haven't ... and they won't. They will make sure all the "language of the contract" is good. Mr. Cape Coral gave sound advice, which INCLUDED having a lawyer look at the contract. As stated by Mr. Cape Coral, ... "It is also advisable to have a Real Estate Attorney review the contract with you."

[FlaLove]

Originally Posted by Living the Florida Dream

Be careful. A real estate lawyer might knoiw the legalities of the contract, but does not necessarily know the real estate market. Will a real estate lawyer give a market analysyis to tell you if what you are paying is even in the ballpark of what the propeerty is worth? Has one ever given you a market analysis? Have they? No, they haven't ... and they won't. They will make sure all the "language of the contract" is good. Mr. Cape Coral gave sound advice, which INCLUDED having a lawyer look at the contract. As stated by Mr. Cape Coral, ... "It is also advisable to have a Real Estate Attorney review the contract with you."

I imagine most realtor market analysis will just be generated reports of recent sales which would be almost impossible to use without any details (upgrades, etc). I'd like to know what good this will do with a planned community builder with set prices and few comps. All of the recent sales information is also public and can be found independently with a little due diligence. While an experienced realtor may have value in some situations, I don't think building in a planned community is one of them.

[JPrzybylski07]

Originally Posted by FireStation46

Builder stating closing cost will be determined later. I can nit get a committment out of them.

As a percentage of the full price of a $500,000 Home, what estimate have you seen near the RSW/Three Oaks/Alici area?

Thanks

I'm an escrow officer here in Naples. Truth be told the builders should offer in the ballpark of a $2,000 credit if you use their in house title, assuming they have one. However, in the contracts they also make you pay for the deed transfer tax which sellers would normally pay so if you don't use the builder's in house title you are basically throwing $2,000 down the drain.

Owner's policy is $575 dollars for the first $100,000, then an additional $500 per hundred thousand up to a million. Add a search and closing fee in the ballpark of $500 dollars if you don't use their in house title.


Also read the contract, who pays realtor commissions if you use one? Maybe you can get a credit if you don't? Every contract is different, and even 2 from the same home builder might vary so take nothing for granted and read everything!