GENERAL QUESTIONS AND ANSWERS
Q . What is the commission rate charged on the purchase of a home?
A . The Seller of the property usually pays the Buyer’s Agent. Rarely, (under special circumstances) are Buyers asked to pay the Agent’s real estate fees.
Q . What other fees will I be expected to pay at the time of closing?
A . Upon closing you will receive a HUD (Housing & Urban Development) Settlement Statement, which will list your Lenders’ fees, Escrow Fees to the Title Company, HOA Dues, Property Taxes, Attorney Fees, Recording Fees & Courier Fees.
Q . Who prepares the HUD Statement?
A . The HUD Statement is prepared by the Title Company involved in the transaction. They are responsible for compiling all the documents associated with the transaction. The Title Company does not act on behalf of or represent the Buyer or Seller. They are also responsible for issuing the Title Policies.
Q . Do I pay for the Title Policy?
A . As the Buyer, you pay for a Title Policy that protects your Lender. The Seller usually (a negotiable item) pays for the Title Policy for you the Buyer.
Q . What “up-front” costs are associated with the purchase of a home?
A . Your first cost will be your Earnest Money Deposit (between $1,000.00 & $5,000.00) depending on the purchase price of the property you are buying. Next will be the cost of the Home Inspection ($275.00 - $350.00) depending on the size of the home to be inspected. You will also need to pay for WDI (Wood Destroying Insect) report, approximately $75.00.
Q . Besides Realtor services, what other service providers will be involved in the transaction?
A . Additional Service providers: Home Inspector, WDI Inspector, Engineer (if required) Surveyor (if the seller does not provide an existing survey (a negotiable item). The Title Company, Your Lender.
Q . Should I retain the services of an Attorney and a CPA?
A . It is always prudent to obtain counsel from these professionals. However, the choice is entirely yours. The purchase contract you will be signing clearly states that your Realtor cannot give you Legal advice.
Q . Would I be notified of any additional compensation or bonus fees paid to our Realtor?
A . Yes. The Realtor Code of Ethics clearly states that the person we represent must be kept fully informed about all aspects of the transaction.