Seller Closing Costs info
from Fran and Rowena - Southern California real estate
Seller Closing Costs
The sum of the fees associated with the selling (or buying) of a home is referred to as the "closing costs." Certain fees are automatically assigned to either the buyer or the seller; other costs are either negotiable or dictated by local custom. Closing costs in Southern California can vary depending on many factors such as purchase price, commission (typically paid by the seller), and the location. The practice of who typically pays for certain closing costs varies by geographical area in the state of California, and in fact, throughout the country.
It is important to understand what you are obligated to pay for under the Purchase Agreement. Make sure you read the Purchase Agreement carefully! Ask your Realtor® for a copy of the Purchase Agreement before you receive an offer on your property, so that you have time to review the Purchase Agreement and clarify any questions you might have with the appropriate professional.
Some typical seller closing costs in Southern California may include the following. Note: what party pays for some of these costs may be negotiable under the Purchase Agreement, and not mandatory to be paid by either the buyer or seller.
Can you negotiate who pays for closing costs?
In addition to the sales price, buyers and sellers frequently include closing costs in their negotiations.
If a buyer does not have the cash for the down payment and the closing costs, then the buyer may offer to pay a certain price for the property in return for the seller paying some or all of the allowable closing costs. Ask your real estate agent for guidance when you are negotiating, and make sure that the terms are clearly written down on the Purchase Agreement.
How do prorations work?
At the closing, certain costs are often prorated (or distributed) between buyer and seller. The most common proration is for property taxes. This is because of the property tax due date. The seller is "charged" for that portion of the property taxes when they own the property, and the buyer's responsibility for the property taxes would typically start as of the date the buyer owns the property. The escrow holder would use the most recent property tax bill and at the close of escrow, the escrow holder would prorate the amount due between the parties accordingly.
Understanding the property tax calendar - when are property taxes due?
Property taxes are due as follows in
the state of California :
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 This is not intended to be a complete
list of seller's closing costs. Your actual seller fees may be different as negotiated in your contract. Read your Purchase Agreement
and your lender's documents carefully and make sure you understand their terms. You may want to consult with an attorney,
CPA and/or other legal or financial advisor. Please read our Disclaimer.
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Author: Fran Vernon - of Fran and Rowena
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