Sharing Closing Costs in Destin, Florida

    When selling your home for the first time in the Destin, FL area, there are many things to keep in mind throughout the selling process. One of the most overlooked details is calculating the closing costs and negotiating the fees. In some states, the buyer and the seller split these additional taxes and fees evenly. In other areas, it is required for the buyer to pay all closing costs. And, some states will allow both parties to negotiate and decide who should be liable for each individual tax or fee.

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    What Are Closing Costs?

    Closing costs are all the additional taxes and fees that must be paid before a home sale is complete. These fees can vary from one home sale to another and will often include:

    • Survey fees

    • Lawyer fees

    • Pre-sale pest control fees

    • Escrow fees

    • Title insurance

    • Transfer or documentary taxes

    • Brokerage commission

    • Septic inspection

    • Electrical wiring inspection fees

    • Settlement fees

    • Recording fees

    • Mortgage taxes

    Who Is Expected to Pay Closing Costs in the Destin, Florida?

    In Destin, the buyer will usually take on the responsibility of paying the closing costs on their own. However it is becoming more common these days for the buyer to ask the seller to pay some or all of the closing costs. This can be a good way to negotiate with the buyer in order to close the deal quickly and get as close to your original selling price as you can. By offering to pay some or all of the closing costs for the buyer, they may be more inclined to pay a higher amount for the home.

    There are a few simple rules buyers and sellers must follow when it comes to negotiating closing costs. When working with conventional loans, the buyer can only ask the seller to pay for non-recurring costs, so no pre-paid fees or items that are paid for in advance. If the buyer is paying down ten percent or more on the home, the highest amount that the seller is allowed to pay on the closing costs is six percent of the total purchase price. If the buyer is paying less than ten percent down, then the seller can only contribute up to three percent.

    With VA loans, the seller can pay everything, leaving the buyer with no closing costs or down payments owed. With FHA loans, the seller can pay practically any cost required, but the buyer will need to have at least a three percent investment in the home.

    Learning more about what fees are included with closing costs and what you may be expected to pay will help you to better understand the selling process. Agreeing to pay half or all of the closing costs could shorten the time that you have to wait to receive your payment and finalize the sale. Sellers are encouraged to do their own research and find out more information on closing costs and other fine details in order to facilitate the home sale process.

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