CLOSING COST!!!  AND  WHAT ARE THEY?

Closing cost is additional cost that comes with the purchase of a property over the Listed or agreed upon purchase price. Closing Cost varies by state, by Banks- Lenders and by amounts based on the amount of the purchase price. Buyers in most states will normally have to pay closing. Seller do have to pay fees associated with the closing as well

WHAT FEES MAKE UP CLOSING COST?

For the most part they entail Fees charged by Banks: Application Fees to qualify for a mortgage loan, credit report fees (Buyer), Origination Fees, Points (paying extra money upfront to lower payment  on your interest rate) thereby lowering your monthly payments. it can range from 1 point to 5 points depending. 1 point  equals 1% of the loan amount.  (Say a buyer purchases a home and has a mortggae of ($200,000) 1 point will be 2000,000 X .01 = $2,000 The buyer would have to pay extra $2,000 to lower the interest rate a bit.

An appraisal Fee: It is usually paid to a third party (appraiser) separately and directly once the appraisal is done in New York.  It can also be paid at closing fees for Termite inspections, lead based paint inspections, radon inspections,(where necessary)

Escrow fees can includes (monies set aside if repairs are needed, sidewalks, trees to be removed or some other type of work needed on the property that the seller would normally have to repair or pay to have it done.  Escrow  is money set aside for such repair and other issues  and other concessions made by buyer to seller.

Buyer Attoney's Fees, Title Search Fees, and Title Insurance. Home owners Insurance should be obtained before closing (It may even be the same day of closing) since most bank/lenders has this requirement. It also protects the buyer in the event there is a fire or a loss of property during the process.

Buyers may also need to re-imbure the seller for pre-paid expenses incurred by the seller for things paid in advance, like water and sewer paid for the entire period , taxes already paid for the extended period,  Hoa Fees, garbage collection fees etc.

Administrative Fees: includes mailingand postage, courier fees, fees to record deed at the county.

Government Fees: Transfer tax fees

Sellers normally pay their Attorneys Fees, Transfer tax,  Real Estate Commission,, Balance of Loan Amount, Sellers may pay "Seller's Concession"  (which is an agreed upon percentage normally 3% which help the buyer with their closing) It is normally added on the back end of the loan amount which the buyer will pay with the monthly payment. This helps the buyer if their closing money is short.

ADVANTAGES OF SELLING TO A CASH HOME BUYER:

With a Cash Buyer paying a homeowner Closing Cost, this allows the homeowner to walk away with much more cash in their wallets, making them economically better off. They also get rid of their problem home, reduce their stress and headache. Its a Win-Win for all.