Escrow & Closing Costs - What Should You Know?

Escrow & Closing Costs - What Should You Know?

Let’s see… where were we? Oh, Yes! You’ve listed your home with me; we found a qualified buyer; and are now in Escrow. We are more than half way towards closing escrow and selling your home. But what happens now? And what should you know as we enter the home stretch?

A lot of things that you aren’t aware of happen between offer acceptance and the close of escrow. We all know about home inspections, buyer contingencies, and funding the loan. Under the best of circumstances it should feel like a smooth and seamless process, but there is always a driver who is behind the scenes making it happen.  The ultimate driver, would be your agent, in this case, Me!  I’m at the head of a great team of professionals who handle all of the details to help ensure that escrow closes. Included in my team of professionals are my Transaction Coordinator (TC), The Escrow Officer, and The Lender, among others.

The TC is my backseat driver and they will often communicate on my behalf and will create and send any necessary documents that may require your signature. The TC follows the property as it moves through the escrow process keeping an eye out for things that may delay closing. Such as inspections that have not been completed, repairs that the lender may require to be completed prior to Escrow closing, etc.

Let’s presume that escrow has moved smoothly along and we are now ready to close, and are sitting down to sign your closing documents. What should you be aware of now?

Well, for starters, Closing Costs. Here’s a breakdown of Closing Costs from the Sellers perspective:

Required:

• Title and Escrow Fees: 50% (split between Seller & Buyer). This includes transfer taxes. Title Insurance, Notary fees, etc…
• Commissions to the Real Estate Agents: Generally 5-6% of the Sales Price.
• Loan Payoff: Your outstanding Mortgage Balances would be satisfied at closing.

Optional:

• Home Warranty
• Property Taxes (prorated)
• Pest or Septic Inspection
• HOA Fees (prorated, if required)

Fees and Charges can be negotiated, and in this Seller’s Market it is wise to do so. I’m always happy to help you improve your bottom line and shift some of the burden to the buyer in the form of a higher final sales price, quicker removal of contingencies and/or requiring a buyer to be cross qualified by my preferred lender. After all the sooner escrow can close the lower your carrying costs will ultimately be. Closing Costs can run between 2-5% of the Sales Price. Knowing this ahead of time and determining how much of this expense you are willing to take on will help in setting your home’s sale price and will ensure that when Escrow closes you’ll feel happy and satisfied with the process and most importantly your bottom line. 

Being focused on these kinds of details is just one of the many strategies that I incorporate into the process of selling your home. My goal isn’t just to sell your home it’s to sell your home for the maximize price that the market will bear while protecting your interests at every turn! Call me today; you have nothing to lose and everything to gain.