Closing costs and other basic Real Estate 1.0 questions (6%, commission, mortgage)

[taladyvet]

hi everyone - I need to ask basic questions because it's Monday and I also forgot most of what we did when we bought our present house.

We have lived in our home in TX for 10 years (our first home). We had originally planned to relocate back to NH this year, but Life dictated that we wait until next year. This is fine, since this gives us even more to sock away funds for relocation costs and other funds. My husband is now in a position where his salary can more than cover all our costs, and I will be returning to college for my Masters.

But my brain has decided to forget some basics: what are the closing costs for selling a home in TX and for buying a home in NH? Who pays for them, the buyer or the seller? In TX, I DO recall not needing a real estate attorney, just our realtor; is it the same state-wide across NH?

We don't plan to use any monies from the sale of the TX house for purchase in NH (since we pretty much just want OUT of TX and will be happy if the sale price covers what we have left on the mortgage, our realtor's commission and the aforementioned closing costs), and because we want a small mortgage (unless we can pay for a home in full in cash).

And once I get off this computer I will be researching about buying and selling, but would appreciate an understanding answer (see, coffee is also important for good grammar).



Bran

[ndcairngorm]

In Texas it is often the Buyer who, intentionally or not, determines most of the closing costs.

In Texas if a Buyer wants to close through a title company and have the benefit of title insurance, usually the costs of this mostly accrue to the Seller (unfortunately). I forget the percentage of sales price = someone else will probably chime in - but it can run over a thousand dollars. Realtors usually urge their buyers to close this way.

However, you can agree with the Buyer to close using a real estate attorney for only few hundred dollars, (which costs the two of you would split) provided you are fairly sure your house's title is clean and unencumbered. He will provide a warranty deed, perhaps not a general warranty deed, but one that is legal nonetheless.

You will still pay the realtor his fees - 6% or whatever he charges - no matter whom you use to close.

If the Buyer wants the house inspected, he pays those fees.

Someone else in the realty business may want to add to this outline.

I forgot to add: if the Buyer needs a mortgage the mortgage company will probably require closing thru a title company.

[bizcuit]

You do not need an attorney to buy a house in New Hampshire. Most people use a buyer's agent. Theoretically, the buyer pays the closing costs, although some buyers might try to get the sellers to cover some of that. It would need to be agreed to in the contract, however, and can make your offer not as strong.