What do 'closing costs' include?

eastgateSeptember 18, 2009

A potential buyer requested that I pay all of his closing costs, $10,000 on a $200,000 house. He had included in the costs an estimate of over $3000 for insurance. Is it typical for the seller to pay the insurance premium in addition to bank fees? I also don't understand where he came up with the $3000 when I pay $1200/year, but that's beside the point.

Thank you for reporting this comment. Undo
Billl

It doesn't really matter what they call a fee - it is just money you won't get. The only thing that matters to you is what you net out with at the end.

BTW - before closing, you will get a real list of charges. Until then, everything is just an estimate. If you agree to pay "up to" a certain amount, that is max it will be.

    Bookmark   September 18, 2009 at 2:26PM
Thank you for reporting this comment. Undo
dave_donhoff

Hi Eastgate,
If your buyer is using conventional financing, their lender won't let them pocket any of your contribution toward their closing costs... so no worries there, its not like they're pulling a quick one on you.

Here's a list with explanations of typical closing costs;
http://www.nobullmortgage.com/closingcosts.php

Cheers,
Dave Donhoff
Leverage Planner

Here is a link that might be useful: List & Explanations Closing Costs

    Bookmark   September 18, 2009 at 3:05PM
Thank you for reporting this comment. Undo
jrdown

Dave ~

Thanks for posting the closing costs explanations. I will run it off for my education.

Robyn

    Bookmark   September 20, 2009 at 6:24AM
Sign Up to comment
More Discussions
Home sellers: Terrible experience with realtors?
Hi there, I'm getting ready to sell my house and need...
dollhausimaginations
Being Sued for Home Sale
We had our home built in 2003.It was our dream home.Half...
camsgt
Should we buy a home that was unoccupied for 6 years?
There is a cup-de-sac where a builder built 5 homes,...
coffeemama1
Best time to List a House
Is there a best time to list a house for sale? We have...
hayden2
trying to buy worried about appraisals
I looked at a house, liked it an made an offer. The...
neobuyer
© 2015 Houzz Inc. Houzz® The new way to design your home™