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:

  • Attorney fees
  • 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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If you’re looking for a new home, we can help. Check out these great new homes on the Laguna Beach market right now.