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Old 08-08-2012, 03:25 PM
 
Location: Lexington, SC
4,281 posts, read 10,346,058 times
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Quote:
Originally Posted by Wilton2ParkAve View Post
NY State. Average closing costs sans commission at $5,600 vs. a median price of $320,000.
Texas $4500 in closing costs, median price below 200,000 (so > 2%)

2010 closing costs survey: most and least expensive states

Mea culpa please.
That article/chart said $3,741 average on $200K mortgage so average is 1.87%.

Mad at myself as my first post said 1.5 to 2.0% and I changed it to 1.5%.

Mea Culpa
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Old 08-08-2012, 03:42 PM
 
Location: El Dorado Hills, CA
3,672 posts, read 8,023,725 times
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Quote:
Originally Posted by snowdenscold View Post
What do you mean by escrow fees? Just prepayments toward taxes and insurance, or the balance of all closing costs on a transaction?

I assume you mean the latter, but I usually think of escrow fees as one component of the closing costs: lender fees, title fees, escrow fees (prepayments), and government recording / transfer fees (taxes). Actually to be more precise, I think of them as something I have to pay at closing, but not a true "fee" or "closing cost" in the sense that it's not money out the door - it's just paying early for something I would have to do anyway.
You pay escrow fees as a component of closing costs (typicaly fixed regardless of price of house), title insurance fees that are typically a % of the price of the house, and you pre-pay into an escrow account where you are paying early for something you would have to pay anyway.
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Old 08-08-2012, 08:56 PM
 
1,784 posts, read 2,893,784 times
Reputation: 1242
Quote:
Originally Posted by snowdenscold
What do you mean by escrow fees? Just prepayments toward taxes and insurance, or the balance of all closing costs on a transaction?

I assume you mean the latter, but I usually think of escrow fees as one component of the closing costs: lender fees, title fees, escrow fees (prepayments), and government recording / transfer fees (taxes). Actually to be more precise, I think of them as something I have to pay at closing, but not a true "fee" or "closing cost" in the sense that it's not money out the door - it's just paying early for something I would have to do anyway.
Quote:
Originally Posted by NinaN View Post
You pay escrow fees as a component of closing costs (typicaly fixed regardless of price of house), title insurance fees that are typically a % of the price of the house, and you pre-pay into an escrow account where you are paying early for something you would have to pay anyway.
I'm afraid you didn't help answer what I was getting at.

Either way, a significant piece of the final amount you owe at closing is based on the house price, and another significant piece is fixed. For example, insurance and tax reserves (pre-payments), interest pre-payments, title insurance, [realtor commission - which we're excluding here], government transfer/stamp taxes, and loan points will all scale up with house value.

Miscellaneous lender fees (appraisal, origination charge, credit check, flood cert, tax service, etc.) and title attorney / settlement fees are generally fixed and will not scale with your house.

Once house prices reach a certain point, the former will start to dwarf the latter, and thus you can approximate closing costs as percentages within a fairly narrow range. For much lower prices houses, the fixed costs will be much more relatively significant, and such rules do not apply as well.
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Old 08-10-2012, 10:01 PM
 
Location: S.W.PA
1,361 posts, read 2,437,776 times
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Thanks everybody for your insight. So when I sell I would have the closing costs (say $4000 in my case) plus realtors fee? Or are the closing costs referenced above on the buying side?

Last edited by stevo6; 08-10-2012 at 10:11 PM..
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Old 08-10-2012, 10:47 PM
 
397 posts, read 493,837 times
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Quote:
Originally Posted by MrRational View Post
Go into your files from when you BOUGHT.
Find the HUD sheet.

You'll get to pay the expenses on both sides this time.
And don't forget to look at your repair list that you submitted when you bought the house. What goes around comes around!
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Old 08-11-2012, 09:49 AM
 
1,784 posts, read 2,893,784 times
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Quote:
Originally Posted by stevo6 View Post
Thanks everybody for your insight. So when I sell I would have the closing costs (say $4000 in my case) plus realtors fee? Or are the closing costs referenced above on the buying side?
There will be fewer fees (other than commission) than on the buyer's side, but still some. It will vary by location.

On the last house I bought, the seller (not myself) had to pay 6% commission, $295 admin fee to his realtor's office (!), $295 settlement/closing fee, $90 document prep fee, $20 fedex fee, $15 document retrieval fee, $400 grantor tax to the government, and 1.5% of the house price in seller credit to me.

Since we closed 12 days before 6-month property taxes were due, they only got a small credit from us for that prorated amount back. If you close at a different time, you may get a much bigger chunk of taxes back that you prepaid.

So depending on where you live, you could potentially pay less than $500 on the seller's side (plus commission). Or maybe $1200+ and seller credits too.
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Old 08-11-2012, 04:34 PM
 
Location: S.W.PA
1,361 posts, read 2,437,776 times
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Quote:
Originally Posted by snowdenscold View Post
There will be fewer fees (other than commission) than on the buyer's side, but still some. It will vary by location.

On the last house I bought, the seller (not myself) had to pay 6% commission, $295 admin fee to his realtor's office (!), $295 settlement/closing fee, $90 document prep fee, $20 fedex fee, $15 document retrieval fee, $400 grantor tax to the government, and 1.5% of the house price in seller credit to me.

Since we closed 12 days before 6-month property taxes were due, they only got a small credit from us for that prorated amount back. If you close at a different time, you may get a much bigger chunk of taxes back that you prepaid.

So depending on where you live, you could potentially pay less than $500 on the seller's side (plus commission). Or maybe $1200+ and seller credits too.
Thanks for this. This is what I was looking for.
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