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    Costs That Affect the Bottom Line During a Home Purchase

    americaOne of the biggest unarticulated questions most people in the market have is, “How much is buying/selling a house going to cost me?” It constantly amazes me how valuable this simple information is to both the new and the more seasoned buyer or seller. It is not just commission that gets paid when a house transfers from a seller to a buyer. There are a number of additional costs involved that sometimes dramatically affect the bottom line at the closing table.

    Any of us who have bought or sold a home have received an estimated and a fi One of the biggest unarticulated questions most people in the market have is, “How much is buying/selling a house going to cost me?” It constantly amazes me how valuable this simple information is to both the new and the more seasoned buyer or seller. It is not just commission that gets paid when a house transfers from a seller to a buyer. There are a number of additional costs involved that sometimes dramatically affect the bottom line at the closing table.

    Any of us who have bought or sold a home have received an estimated and a final closing statement. Go check your folders. There will be a closing statement in the mess of paperwork jammed into your file cabinet, or tossed in a box in the garage.

    The estimated and final closing statements are provided to give us an idea of what the costs associated with the transaction are going to be. The final closing statement is the actual cost. Normally, the estimated closing statement is higher than the final closing statement, and that’s why most receive a check in the mail a week or so after closing.

    Here is a sample transaction, in the city of San Francisco, because each city has different costs associated with buying or selling there. This sample is based on a $1,000,000 sales price and an eight hundred thousand dollar loan amount.nal closing statement. Go check your folders. There will be a closing statement in the mess of paperwork jammed into your file cabinet, or tossed in a box in the garage.

    The estimated and final closing statements are provided to give us an idea of what the costs associated with the transaction are going to be. The final closing statement is the actual cost. Normally, the estimated closing statement is higher than the final closing statement, and that’s why most receive a check in the mail a week or so after closing.

    Here is a sample transaction, in the city of San Francisco, because each city has different costs associated with buying or selling there. This sample is based on a $1,000,000 sales price and an eight hundred thousand dollar loan amount.

    Sales Price     $1,000,000.00
    New First Loan     $800,000.00
    Interest Adjustment 11/30 to 1/1, 32 day(s) @ $87.67    $2,805.48
    Flood Check Fee    $25.00
    Tax Service Fee    $60.00
    Appraisal Fee    $450.00
    Credit Report    $35.00
    Underwriting Fee    $475.00
    Concurrent Loan Charge (Est. Total: $150.00)    $150.00
    Homeowner’s Policy of Title Insurance (Total: $2,431.00 as of 4/2/2012)    $2,431.00
    ALTA Loan Policy (Total: $922.00 as of 4/2/2012)    $922.00
    Escrow Fee (Total: $1,450.00 as of 7/28/2014)    $1,450.00
    Notary Fee (Est. Total: $250.00)    $125.00
    Average Recording Charge (Est. Total: $110.00)    $110.00
    Recording Service Fee (Total: $20.00)    $20.00
    County Transfer Tax (Total: $7,500.00)    $0.00
    Due from Buyer (est.)    $209,058.48

    So the total estimated cost for a buyer in the City of San Francisco who is purchasing a $1,000,000 home is Q$1,009,058.48. The extra $9,058.48 is nothing to sneeze at when you’re purchasing a home. It needs to be factored into your down payment amount because these costs cannot normally be financed. All of this means you will have to write a check for your down payment and closing costs when you go to sign your papers.

    These numbers were provided courtesy of First American Title Montclair, which provides an online cost estimator available to all by simply logging into www.myfirstam.com and going to cost calculator. Alternatively, you can contact me and I would be happy to provide this information.

    America Foy is a top-producing agent with Sotheby’s International Realty at 2 Tunnel Road in Berkeley, 510-473-7775. For questions or suggestions for topics to discuss, e-mail him at americafoy@gmail.com