Closing Cost in Maine (Auburn, Houlton: short sales, real estate market, foreclosure)

[truthseeker2012]

Originally Posted by BoundtofindME

WhoFanMe is absolutely correct. Here is a quick breakdown of what's "typical" but keep in mind no one HAS to be "typical."


In Maine, things that a Seller is typically is responsible for:

Fee to prepare deed for buyer (varies can be as low as $100 or high as $1000)
Proration of property taxes for portion of year they owned it (based on annual tax amount)
transfer fee (both sides pay) $2.20 per thousand of selling price
If seller is not Maine resident they pay withholding tax of 2.5% of anything sold over $49,000.

The buyer "typically" pays for:
Earnest money (to show seriousness of offer - gets credited back to buyer at closing.
Application fee, credit report, underwriting fees, appraisal, points paid to the lender, hazard insurance, taxes, inspections, courier service fees, title search, doc fees, transfer fees, etc., etc.

When writing a purchase and sale agreement, you can request a buyer pay for all or part of closing costs (usually there is a cap put on it so the buyer knows what to expect). You need to work with a lender to find out these costs for your particular situation. If you are paying cash, of course that completely changes the picture. Just remember most things are negotiable.

OK This is awesome, One thing I did not mention is I will be buying the home for cash (No Mortgage) does that eliminate any of these cost that you mentioned?

[BoundtofindME]

Originally Posted by truthseeker2012

OK This is awesome, One thing I did not mention is I will be buying the home for cash (No Mortgage) does that eliminate any of these cost that you mentioned?

Yes, you would only HAVE to pay for the transfer fee ($2.20/per thousand of purchase price) and of course your property taxes. Hazard insurance and title insurance are at minimum, a really good idea. You can get a title company (i.e., an attorney) to handle the closing for you. They can do this for around $500. But remember -- let negotiation with the seller work for you in this market to get your costs met!!!! Good luck to you.

[WhoFanMe]

Originally Posted by boonelsewhere

truthseeker, don't settle for that yet. some one who know more on this subject will come along and give you some general closing cost in Maine so you can use as the negotiat tool before sign the contract.
It cost me about $1500, if i remenber correctly cost forest about $200-500

That's a bit rude booneelsewhere, I am volunteering information on a free forum because I enjoy helping people and the camraderie of the Maine and Portland forums. The OP asked a question and I answered it correctly. BoundtofindME has volunteered some very accurate information in addition what the OP asked, and he is grateful.

[WhoFanMe]

Originally Posted by BacktoNE

It also depends on if you are using a regular bank or a mortgage broker. Brokers charge much higher closing costs.

In a depressed buyers market, such as we are in currently, buyers can frequently get the seller to pay most if not all of the closing costs. DH & I have only paid a portion of closing costs once, for our first house. The other 2 times, the seller paid 100% which just goes to show it never hurts to ask.

I'm not sure that is necessarily true. I have seen some very high fees from banks on HUD statements and very low fees from mortgage companies. You and your agent (if you have one) need to review your Good Faith Estimate and HUD statement prior to closing to ascertain that you are being charged what you expect. Certain lenders advertise a very low rate and then stick on a bunch of junk fees on the HUD statement (which is conveniently delivered just hours before the closing when it's too late to change lenders).

[WhoFanMe]

Originally Posted by Casper1212

I love this forum! I'm getting info on things I didn't even think to ask about. We plan to buy a house after we get to know the area.

Thank you Casper, you are very friendly. Rep points to you!

[WhoFanMe]

Originally Posted by truthseeker2012

OK This is awesome, One thing I did not mention is I will be buying the home for cash (No Mortgage) does that eliminate any of these cost that you mentioned?

truth, be very careful that you only ask for seller concessions on your actual closing costs. If you structure your offer based on a certain purchase price and certain amount for closing costs and your actual costs are less than agreed to by both buyer and seller, the excess goes back to the seller, it does not reduce your purchase price.

[WhoFanMe]

Originally Posted by BoundtofindME

Yes, you would only HAVE to pay for the transfer fee ($2.20/per thousand of purchase price) and of course your property taxes. Hazard insurance and title insurance are at minimum, a really good idea. You can get a title company (i.e., an attorney) to handle the closing for you. They can do this for around $500. But remember -- let negotiation with the seller work for you in this market to get your costs met!!!! Good luck to you.

Most titles companies will requre a title search and insurance, even in a cash deal. I represented the buyers on a building lot in Gorham last month, I'll check the HUD statement to see what else the buyer paid. I also represented the seller on a log home in Gorham in December and the buyer paid for a Class D Boundary survey (roughly $200), which I thought was an excellent idea.

[boonelsewhere]

my apology, my choice of words did not came out right, all i tried to say was some other forum members will have a break down numbers for the OP to have better understand.
I agreed BoundtofindME did excellence job with detail information.

Originally Posted by WhoFanMe

That's a bit rude booneelsewhere, I am volunteering information on a free forum because I enjoy helping people and the camraderie of the Maine and Portland forums. The OP asked a question and I answered it correctly. BoundtofindME has volunteered some very accurate information in addition what the OP asked, and he is grateful.

[WhoFanMe]

Originally Posted by boonelsewhere

my apology, my choice of words did not came out right, all i tried to say was some other forum members will have a break down numbers for the OP to have better understand.
I agreed BoundtofindME did excellence job with detail information.

Thank you, I appreciate it.

[truthseeker2012]

Originally Posted by BoundtofindME

Yes, you would only HAVE to pay for the transfer fee ($2.20/per thousand of purchase price) and of course your property taxes. Hazard insurance and title insurance are at minimum, a really good idea. You can get a title company (i.e., an attorney) to handle the closing for you. They can do this for around $500. But remember -- let negotiation with the seller work for you in this market to get your costs met!!!! Good luck to you.

Terrific yes Forest has DM me his Lawyer info which I will use gratefully.
I want to thank all of you for your help!
Can't wait to move to Maine