In Laguna Beach the closing costs define what each buyer and seller pay during escrow. But, many of these fees are negotiable between the buyer and the seller. So, determining which one pays what becomes part of what your real estate agent helps you negotiate during the offer/acceptance time.
And, sometimes the county determines these fees and costs, so they vary widely.
Here are some examples of potentially negotiable items:
Courier and delivery charges
Document preparation fees
Escrow fees (this item is often shared between the seller and the buyer)
Notary fees for witnessing document signing
Recording fees for filing documents with the Orange County recorder
Property taxes (for the remainder of the current year or for the first year into the future)
Owner’s title insurance premium
Lender’s title insurance premium
These costs typically get covered by the buyer:
Appraisal for loan qualification
Credit report for loan application
Homeowner’s insurance for fire and hazard
Loan origination and processing fees
Private Mortgage Insurance (PMI) if your lender requires it
Prepaid interest which is prorated depending on the time of the month that your loan closes
These costs typically are covered by the seller:
Real estate agent’s commission
Disclosure and hazard reports
Home warranty (if the seller offers one)
Existing encumbrances (property tax owed, etc.)
Property inspections (sometimes shared with the buyer)
Pest control and termite reports
Repairs and damage mitigation
City/County transfer or convayence tax
And, there may be other costs as well. So, for example, if the inspection reveals necessary repairs such as the need for a new roof or foundation repair, the seller typically pays for it, but if the sale is under duress, the buyer may choose to cover it.
Don’t be surprised on closing day
If you are new to real estate or haven’t sold or purchased a home in a long while, make sure you ask about any fees or charges that you do not understand. The last thing you want is to get to closing day and not be prepared. Our experts make sure that you are ready for the big day.
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