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maybe they were referring to you not having to pay any of the buyer's loan closing costs? these are costs related to the buyer's new mortgage loan which sometimes sellers are asked to pay but not required to pay.
Palm Beach County, Florida is different from the rest of the state (in more ways than one). The seller is responsible for the Owners Title Insurance Policy, which of course is the most expensive of the two. Because real estate taxes are due in November for the calendar year, the Seller will pay a proration to the Buyer at closing for the time that they owned their home. Many lenders charge an estoppel fee to obtain the mortgage payoff statements for your loans. The title companies charge a closing fee to both buyer and seller for the closing of the loan and preparation of the Warranty Deed, etc. The seller is also responsible for the Doc Stamps on the Warranty Deed (a tax that goes to the county). Your Title company can give you a breakdown of all these fees. The responsibility for the fees are pre-printed on every Florida Sales Contract. So, unless you counter it otherwise, you have to pay them.
I hope this helps a little. I use to process and close at a Title Company in Palm Beach. I am now in Evans, Georgia enjoying the slower lifestyle
I've never had a seller not pay half (sometimes more if the buyer needs help) of the closing costs. It does vary per county/state, but I find it shocking that a realtor would tell you that you wouldn't pay ANY closing costs--I've never seen that. Of course, a seller could try to write it into the contract that they wouldn't pay any, but that would make the home harder to sell. So, no, paying a portion of the closing costs is not out of the ordinary.
Buyer closing costs (those costs that would normally be attributable to the buyer), such as costs associated with their loan, a lender title insurance policy (if required by the lender), accrued interest, insurance, and taxes for the impound/escrow and mortgage accounts, and other miscellaneous escrow company fees associated with all the paperwork.
Seller closing costs (those costs attributable to the seller), such as paying off the property taxes current to the close date, interest on the current mortgage up to the close date, an owner's title policy (assuring the new owners of clean title - no liens, etc - also relieves you of liability should a cloud on the title show up in the future), and then the miscellaneous escrow company fees.
While I've heard of sellers helping to pay some of the buyers closing costs (especially if the buyers are qualified but don't have extra money for loan costs, etc; or if the buyers are getting an FHA or VA loan the seller is required to pay certain buyer closing costs), I don't think I've ever heard of a buyer offering to pay seller closing costs unless there was some sort of a pre-foreclosure or default situation.
I really can't imagine an agent telling you that "you WON'T have any closing costs". That's just absurd. Perhaps your first agent was referring to you paying some of the buyer's closing costs? I don't know - just doesn't make sense. Your current agent is being upfront with you in getting you a seller's net sheet, and letting you know exactly how much you'll come away with from your sale.
I can imagine an agent saying "there are no fees"... "no fees" to LIST your home that is (unless, of course, they do charge a fee for that). I was the #2 agent interviewed for a listing. When I went over the estimate of closing costs, the seller thought for sure I was ripping them off because the other agent specifically told them there were no fees. The language in the listing agreement should be clear stating seller will pay the commission and your contract should clearly address pro-ration and payment of all other fees. So, I guess all looks fine but the only question I have is, just what is "additional settlement fee" of $125? May sound petty but....
well i dont have my first realtor b/c she quit. i'm glad she did. we have never sold a house and asked her strait up what fees will pay at closing she said NO fees you just pay off your motgage you owe. my new realtor told us up front. thanks again for all of your help!!!
I was giving her the benefit of doubt. No misunderstanding there. Don't want to sugar coat it, she was just a bad real estate estate agent. Good for you that she quit! Best of luck to you and hopefully things will go smoothly. Have a good day!
well i dont have my first realtor b/c she quit. i'm glad she did. we have never sold a house and asked her strait up what fees will pay at closing she said NO fees you just pay off your motgage you owe. my new realtor told us up front. thanks again for all of your help!!!
Ahha! I think I see where maybe the confusion came in. You won't have to pay those closing costs "out-of-pocket" before escrow closes. Those closing costs are deducted from the check that's written to you at closing. You still pay for them, you just don't have to write a check for them.
PS I just reread your post, wdwmom2, did she mean that all you'd have to pay at closing was just the payoff balance on your mortgage? If that's the case, then I think she definitely made an "Oops!!!!"
not sure she said when we closed on the house the only thing coming out would be the realtor comisiion and our pay off to our mortgage company
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