Question for you realtors

SASS249 · Sep 9, 2017

We have not purchased a home in over 20 years and at that time paid cash. As I recall the closing costs were not much.

Talking to a realtor friend this week she indicated that closing costs were typically 3% of the loan value. Is this what you folks experience?

I cannot understand why closing costs on a house with a 200K loan should be twice the cost of one with a 400k loan. Both requires the exact same work, just some number differences.

dwhee87 · Sep 9, 2017

Many loans offer to pay closing costs. Many sellers will agree to pay some or all of the closing costs, depending on how motivated they are to sell. I bought a year ago. $284k loan, about $7k in closing costs. Mortgage co paid $2500 of them, seller paid $3500. My out of pocket was less than $1k. Gross, worked out to 2.5%, net, 0.3%. Make sure to ask both the mortgage co and the seller to pitch in.

BeerThirty · Sep 9, 2017

We are in process of selling our house now. Our realtor told us that the seller usually gets the shaft on closing fees. In other words, she told us 3% to her for selling our house, and 3% to the buyers realtor. So we are already planning on this 6% cost. We have only bought and sold once before, and it was via a relocation company from my employer, so I didn't have to deal with a lot of the stipulations and hidden costs, as my employer paid for them... Kind of wish I had more experience otherwise I'd sell myself.

SASS249 · Sep 9, 2017

BeerThirty said:
We are in process of selling our house now. Our realtor told us that the seller usually gets the shaft on closing fees. In other words, she told us 3% to her for selling our house, and 3% to the buyers realtor. So we are already planning on this 6% cost. We have only bought and sold once before, and it was via a relocation company from my employer, so I didn't have to deal with a lot of the stipulations and hidden costs, as my employer paid for them... Kind of wish I had more experience otherwise I'd sell myself.

I understand the 6%commission most full service realtors get. What I do not understand is being told closing costs (not the realtor's commission) will vary based on the loan value.

skeeter24 · Sep 9, 2017

BeerThirty said:
Kind of wish I had more experience otherwise I'd sell myself.

Very easy. You do not need experience.

westcobbdog · Sep 9, 2017

SASS249 said:
We have not purchased a home in over 20 years and at that time paid cash. As I recall the closing costs were not much.

Talking to a realtor friend this week she indicated that closing costs were typically 3% of the loan value. Is this what you folks experience?

I cannot understand why closing costs on a house with a 200K loan should be twice the cost of one with a 400k loan. Both requires the exact same work, just some number differences.

Buying all cash has the lowest fees including no escrow items, but when obtaining a loan the closing costs include escrow items like taxes and insurance and other items like Owners Title Insurance. Some loans have higher Closing Costs than others. I always ask a Seller to pay some or all of the Buyers Closing Costs, most times they do.

BornNRaised · Sep 9, 2017

Be prepared for 6% max, 3% if your agent splits it. That is normal my friend....

If you have 400k to spend be prepared for utilities and upkeep on 400k, the 3% is nothing in perspective.

You pay how much taxes every day on everything? Look around, if can't grasp 3% you are gunna be ticked off!

dwhee87 · Sep 9, 2017

BeerThirty said:
In other words, she told us 3% to her for selling our house, and 3% to the buyers realtor. So we are already planning on this 6% cost.

Commissions are typically negotiable, as well. If you know the realtor, they should be easy to get to knock off at least a 1/2 percent. If you are in a highly desireable area that will sell fast, they don't have to work as hard, so that should bring a discount as well. If you do a lot of the work, (pictures, staging, etc.), they should take that into account.

I've sold/moved/bought 6 times in 30 years. I've never paid the full 6% realtor commission.

rospaw · Sep 9, 2017

The post was on closing cost......

I agree with the poster on closing cost should be a set amount not a %. Same paperwork for a 100k or a mill loan. Why is the 3% the number? Do some lenders wave this fee or discount it? If so any lender names?

SASS249 · Sep 9, 2017

rospaw said:
The post was on closing cost......

I agree with the poster on closing cost should be a set amount not a %. Same paperwork for a 100k or a mill loan. Why is the 3% the number? Do some lenders wave this fee or discount it? If so any lender names?

Thank you for actually reading the question :bounce:

I am not planning on buying or selling for a while. I completely understand real estate commissions and pre-paid items at closing, such as taxes etc. and loan origination costs. What my realtor friend indicated was the actual closing costs (lawyer, title search etc) varied as a percent of the loan amount. This did not make sense to me,

calibob1 · Sep 9, 2017

Title insurance.Surely you don't expect to pay the same for 400 as you would for 200.

westcobbdog · Sep 9, 2017

skeeter24 said:
Very easy. You do not need experience.

Ok, lets hear your secret. The market has already flipped from a Seller to more of a buyer market, fyi.

dwhee87 · Sep 10, 2017

The following are listed under 'closing costs' on my last purchase paperwork:

Loan origination fee (variable)
Appraisal fee (should be fixed)
Credit report (fixed)
Flood Cert (fixed)
Tax related Service Fee (fixed)

Title exam fees (fixed)
Title insurance (variable)
Title Settlement fee (fixed)

Recording fees (fixed)
Recording Stamp (fixed)
Tax stamp for deed (fixed)

Pre-paid Homeowners insurance (variable)
Prepaid interest (variable)
Property taxes (variable)

Insurance escrow (variable)
Property taxes escrow (variable)

Owners title ins. (variable)

All the variable items are based on the property value.

BornNRaised · Sep 10, 2017

westcobbdog said:
Ok, lets hear your secret. The market has already flipped from a Seller to more of a buyer market, fyi.

In savannah, it is a sellers market. Houses are selling for 10-15 even 20k above asking because so many people are trying to buy in the area.

The sellers are making out like bandits!

My mother has been a realtor for over 25 years and she says the market in her area is HOT right now.

skiff23 · Sep 10, 2017

Closing cost and realtor fees are not the same. Realtor fees are in the sales price from the time of listing the home for sale. As for those who do not like relator fees . Go work all month then let your boss say he is not going to pay you for doing your job.
Closing cost as listed above are split many different ways. It may be to buy points to bring the buyers interest down , a survey , first years home owners insurance or many others things. Insurances are based on value. Lawyer fees may vary some based on what is required to close such as special financing compared to a cash deal. If you are close to closing you can request an estimate cash to seller estimate and all fees will be itemized. If something does not look proper , question it. But remember everybody gets paid, some more than others. And the 6 % that is thrown around for relators fees , it is not always that. Sometimes it is more sometimes less depends on what is being sold and where it is.

HuntingFool · Sep 12, 2017

BornNRaised said:
In savannah, it is a sellers market. Houses are selling for 10-15 even 20k above asking because so many people are trying to buy in the area.

The sellers are making out like bandits!

My mother has been a realtor for over 25 years and she says the market in her area is HOT right now.

Same here. We just put an offer on a house at list price and got beat out by offers at 15,000 over asking price. It is a sellers market. No negotiating closing cost or price here. It is just dump your pockets and hope you don't get beat out.

Not only are you paying all closing cost but also paying above asking price.

westcobbdog · Sep 13, 2017

I am thinking I will sell my house this next Feb / March, as I have seen our metro Atlanta market on fire 3-4 years in a row now at this time of the year. In much of the 17 County Metro area, right now, I am seeing more expired listings and more inventory available than the last year and more being added...coupled with reduced demand ( seems it began slowing down around July) I think we are in for a price correction. Think around 90% of all the property listed right now are overpriced. Even hot areas like Chastain / Sandy Springs / Buckhead have slowed down some.

Question for you realtors

SASS249

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dwhee87

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BeerThirty

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SASS249

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skeeter24

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westcobbdog

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BornNRaised

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dwhee87

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rospaw

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SASS249

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calibob1

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westcobbdog

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dwhee87

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BornNRaised

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skiff23

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HuntingFool

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westcobbdog

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