Mooers Realty Maine Real Estate Blog
Closing Costs On Real Estate Sales, What Happens In Maine?
You are buying or selling Maine real estate, what about property closing costs?
You are in the dark. Hope you have enough money to cover them. Have questions. Wonder and worry what are they? Just don't know what to expect.
How wide the wallet or purse is going to have to open.
Do you have enough can cause sleepless nights.
You hope you do.
What's the damage to buy or sell the property in Maine?
Spell out what everything costs in a Maine property sale.
That's our job. Closing costs are this big black hole of unknown to most.
Because buying and selling Maine real estate is not something people do very often.
And unless paying attention you can be shelling out too much. Or writing checks for items not their responsibility. Without knowing better. Shifted over to the your side of the closing settlement statement. Talked into it not knowing, seeing the shell game underway.
Tell me about closing costs on Maine real estate Mister Broker Man. Gladly. Sure can.
Banks will by law have to provide a good faith estimate of closing costs. They usually aim high. Don't want you coming in short. Right up front, going in. Here's the score, ball park estimates. All of them.
And if the property sale is for cash so much is left blank for numbers on the HUD-1 settlement statement.
The standardized form used so everyone knows where to look, take a quick glance.
To add up the bottom line in the property sale in Maine, any state.
Of what to bring to the closing for the buyer.
What the check (hopefully) reads for the seller to sign here.
Walk away with as proceeds. If there are any.
Simple Maine land sales don't involve all the bank lending paperwork, hoops to jump through.
Maybe a promissory note and mortgage given back, taken by the seller, the grantor. But that's only about a hundred dollar bill part of the closing costs in my area. For the Maine land buyer.
If the sale is bank mortgages, a home. Here comes the expenses. Application bank fee for the buyer. Check. Say $450.
Appraisal paid for from that fee.
In addition to checking the hard copy of the credit report charge.
Origination fees. Title insurance on top of the title search for the lender needed.
The mortgage is often sold on the secondary market.
They have expensive demands.
You the buyer are not putting 20% or more down so risk is greater for default, a foreclosure.
In the pay you stay, you don't you won't.
So property appraiser valuation paperwork to fund.
The corrections, revisit to see the notations on the report are done, repaired.
Signed off on. The broken garage window, missing railing on the steps to the cellar. Peeling paint or missing roof shingles are big red circle areas.
The missing GFI receptacles in kitchen and bath.
Talked about. That kinda stuff. And no tenant in possession at the closing. So seller expenses to evict and tear gas cannisters, court charges, serving eviction notices to fly the heck out of here please. Said with legal teeth.
All those remarks, notations on the appraisal report have to be addressed. By someone. Or the deal goes south. Stalls, gets rejected, denied. The cost to take care of loan program requirements, deficiencies can show up on the closing statement.
Or POC, "paid outside" of closing.
But it is all part of the expenses of the Maine real estate sale. The debate on who, which side picks up the tab can get dicely.
Seller says that's between you and the bank Mr Buyer. Keep me out of it.
The Maine home buyer pulling out two empty pocket liners.
Says hey, struggling here with just the mountain of closing costs. So help me.
Lawyer's fee for searching the title, updating, reflecting the registry traffic is a buyer's closing cost in my area.
I live in a county seat, a Shiretown and registry of deeds is right here in town. So are about a dozen local Maine lawyers. The seller pays for the new property deed, to convey, transfer the title. The notarized, raise your right hand and swear this is your free act and deed one.
Title insurance based on the sale price, put that on the buyer's side.
Proration of property taxes which both buyer and seller split based on the fiscal year.
Those are on that HUD 1.
Both sides or credit if seller has already paid this year's property taxes.
Oil or wood, gas, whatever heating fuel proration for what is left behind. Credit for the seller, expense for the buyer. If a lawnmower, personal property is bought from the seller. That can be lumped on the buyer's side. Lawyer like you to handle that personal property stuff on the side.
Surveying charges. Like a mortgage inspection survey or class IV down and dirty plot plan. That's the buyer's charge. To show if more surveying, further study is needed. If so, then it becomes the seller's side expense to clear up, fix.
To take care of those pesky easements, right of ways. Or the walking, moving late at night property corner markers. The ones the neighbor puppet strings to where they think they should be. Or title problem to get an old undischarged property tax deed recorded. That was paid but not put on record.
Water tests that can be in the $100 area. Buyer's side again because bank requirement. Loan rate discount, points paid up from, by the real estate buyer to get a better interest rate. Those are closing costs and how much expense depends on how deep the interest rate discount you are buying upfront. Reflected on the buyer's side,left half of the two columns.
Mortgage insurance for a buyer is another closing cost.
If less than 20% put down on the property sale. Flood insurance is arks have been spotted, spilling over of the water frontage out back has happened in the past. Or if outdate, inaccurate maps still require, show you need coverage for the chance of flooding.
Pre-payments by buyers to start a kitty for monthly installments of the property taxes, house insurance.
Those are closing costs. On that HUD-1 too. Buyer's side to prime the bank pump of the escrow account. To take the shock out of the once a year bill.
Like the deposit to secure the property.
Start the buying process when this is the one.
Credit or return or application toward closing costs of the deposit.
Put down when the purchase and sales agreement is signed. The place is put under contract.
The deposit says hey, World. I'm buying the place.
Contingent on these fifty items the bank is cranked up about. Clear title, getting a mortgage financing thumbs up the goal. The clear to close signalling we're heading to a closing. Grab one of the many chairs. Pick a pen.
Both buyer and seller have property sale transfer tax amount charge. Another line filled in with a figure on the HUD 1 closing expense, two legal page long settlement statement. So added to the recording fees of so much per page for the legal paperwork, the deed, promissory note, mortgage.
And any other previous mortgage discharges or liens, encumberances on the real estate title.
That are the seller's responsibility to make the property free and clear. Squeaky clean title wise. Ready to roll for a ready, willing and able Maine real estate purchaser to say "I do, can, want to buy."