What closing costs are there on a cash deal? (contingency, foreclosure, agents)

[Cofga]

Just a question? Are you having an inspection done or are you confident that you can do that yourself? How about a survey to make sure you're getting what you think you're getting and really know where the property lines are? There have been a couple recent posts with folks buying property's without surveys only to find that a neighbor has encroached on their property and a legal battle is needed to give a truly clear title.

[hechoenchina]

I bought a condo from Credit Suisse in January. I paid cash. I asked the seller to pay half of escrow fees, and 100% of Owner's Policy. I also made seller pay transfer tax (here it is half a percent), HOA transfer fees, and provide hoa docs.

Here was settlement:

35,400 sales price
4.50 e -recording fee
270.00 half of escrow fee ( i thought was high)
16.00 recording fees

other fees relating only to prepaid hoa fee and prepaid property taxes.

[pfdmed]

I'm not sure why you would have to pay any of the real estate broker commission. Doesn't the seller pay that?

[hechoenchina]

always.

[Mike1306]

Originally Posted by pfdmed

I'm not sure why you would have to pay any of the real estate broker commission. Doesn't the seller pay that?

Originally Posted by hechoenchina

always.

If they have been working under a buyers agency agreement and are buying a FSBO then it is possible the buyer has to pay.

If the agrrement calls for 3% and the seller was only offering 1% then the buyer would be paying 2%.

There are many instances that the buyer will pay their realtors fee.

[CloudyDaysForever]

I am 99% sure that they aren't the seller. They did have a Realtor. Where it said, "Listing agent is owner" it said, "No."

My agent gets 3%. That's about $8,000. I don't see how I'd end up paying $345.

[bentlebee]

Originally Posted by CloudyDaysForever

Ok, I requested charges (I did this at the same time as posting my first message.)

Here they are:
Broker Commission Flat Fee $345
Settlement or Closing Fee $225
Title Exam $140
Title Insurance Premium $852.75
Recording Fees $46
Recording Services Fees $25

It looks like I'm paying the Title/Closing company about $1300. Which seems like a lot, but it is hard to say. ($235k, Minnesota)

Now, here's my big question. If in my Real Estate Agent Contract, it says that he is only being paid 3% and no fee, is this "Broker Commission Flat Fee" a bogus charge?

Why do you have to pay the broker commission flat fee, that is for the seller unless you have offered to pay for the brokers fee. The rest seems logical to me. I always paid a couple of hundred dollars on cash deals. Title ins. is in Fl. always incl. and I would try to get rid of it, specially with mortgages traded hands so many times right now. If you have a HOA it is normal that the buyer has to pay a small part as well because it is for the HOA to send you the handbook, etc...
Again I wouldn't pay the brokers fee as a buyer! They can take it or leave it...and you know how glad they want a cash buyer to walk....

[loss.mitigation]

Originally Posted by FlaLadyB

WHY would you suggest that pay cash is doing the Real Estate agent a "FAVOR" and it's ok to ask them to cut their commission!!!! Both the agent and the Seller still gets their money no matter if you do cash or a mortgage.

Yes, find out about which "fee" is what they are getting but what I see in his statement is the Broker is getting ONLY $345 which means the AGENT is getting lots less than that plus he/she pays taxes on what they DO get and pay all their own expenses in finding someone a house.
Gimme a break here!

Them is referring to both the seller and the agent; truthfully a cash deal is a sure deal and saves time and frustration for all parties at closing, whereas financing "could" fall apart for whatever reason, it has happened many times.

If the agent is a serious transparent and ethical professional, this agent should not have any ambiguous clause or stipulation written in their contract alluding to one thing while covering up another misc. fee.

Everything must be spelled out and be consistent; and it seems that the buyer is not receiving a professional services instead a half-way job. My previous recommendation still stands and I think the buyer should receive the benefit of the doubt and for the seller/agent to get their act together.

[Summering]

I bought a home paying cash......The only way it helped is that they chose us over someone having to wait for and obtain a mortgage. It did help with the fact that they knew nothing would fall apart.
But, the seller still had to pay her commissions to her listing agent.
Florida closing were less. I closed paying cash on a condo and the fees were very small.
In PA I used a lawyer rather then just the title company and those normal closing fees were higher this way. Not all that much.
The selling part is the most costly.....The seller paying the commissions.

[CloudyDaysForever]

I'm going to approach my Realtor about this. If he doesn't make it go away, simply, I'm going to give him quite the headache. I wanted to verify that something was up, and now I'm confident that there is.

Also to the person asking about an inspection and a survey. Yes, I had an inspection done. The seller fixed everything on the inspection list (very nice of them, I didn't think they would.) I'm not having a survey done, but the lots are very regular. Both neighbors have a chain link fence, and they are exactly between the houses as far as I can tell by eyeballing it. The yard seems square. The house backs up to a park, so there's no neighbors to encroach back there. I'm not worried.