Chance Gates' Blog

1.)  Commissions:  I’m sure it does not surprise anyone that commissions are apart of the sellers closing cost.

2.)  Settlement Escrow/Attorney Fees:  Attorney fees can be negotiated as apart of the sellers closing cost.

3.)  Seller’s Title and Escrow Fees:  This is the title insurance and escrow fees which will always vary base on price and which title company that the seller is using.

4.)  Subordinate Lien Payoff:  This is a set amount the first is willing to pay the second to get them to release their position on the home.

5.)  Transfer taxes/stamps/recording fees:  In Nevada the transfer tax will vary depending on which county the home resides in.

6.)  Termite Inspection/repair:  Where most short sale in the Reno/Sparks real estate are “As-IS Where Is” pest inspections and repairs can be negotiated as part of the seller closing cost.

7.)  Borrower Relocation Assistance:  http://chancegates.com/2010/03/14/home-owners-to-be-paid-to-short-sale/

8.) Other: Any negotiated lender payoffs that doesn’t fall into one of the top categories

The source of this information is http://www.makinghomeaffordable.com/.   I always advice anyone who is thinking of short selling their home to consult with an attorney and a CPA to make sure they understand all the options available to them.

As a Reno/Sparks real estate professional, I encourage all questions or comments on the Reno/Sparks real estate market or any of the articles posted on this blog.  I can be reached by email chance@ballard-company.com or at http://www.myspace.com/chancegates

When buying a home it is important to remember the cost.  The days of 103% financing with nothing down are behind us for the most part.   So what will a buyer need to pay at closing?

The easiest place to start is the down payment; most FHA loans require 3.5% minimum. Every lender will require an appraisal, to determine the market value of a house. To get a complete cost of what a lender is going to charge ask for a good faith estimate.   Lender title insurance policy is another lender requirement.

A buyer should always know the condition of the home he/she is purchasing.  This can be accomplished by getting everything inspected by a licensed professional.   A home, pest, septic, and well are the common inspections, however there are more.   I do not recommend cutting costs by skipping the inspections.

Escrow fees and transfer tax are usually (not always) split.  Escrow fees are based on the purchase price and will change.  The Washoe County transfer tax is $4.10 per every thousand of the purchase price.   For example:

$100,000 house would be 100 x 4.10 = $410.00

There can be other costs such as a home warranty, property taxes, garbage fees, etc…

There can be many tax benefits, to homeownership. In today’s lending climate, it would be difficult to get into the predicament that many current homeowners find themselves in. However, homeownership is a big and costly responsibility and not one to be taken lightly. You should consult with your accountant, financial advisor, and lender to be sure that you are aware and able to meet the necessary monthly, yearly, and future financial commitments required in homeownership

As a Reno/Sparks real estate professional I encourage all questions and comment on the Reno/Sparks real estate market or any article posted.  I can be reached by email at chance@ballard-company.com or http://www.myspace.com/chancegates

Buying or selling a home (or other piece of real property) usually involves the transfer of large sums of money. It is imperative that the transfer of these funds and related documents from one party to another be handled in a neutral, secure and knowledgeable manner. For the protection of the buyer, seller, and lender, the escrow process was developed.

As a buyer or seller, you want to be certain all conditions of sale have been met before property or money change hands. The technical definition of an escrow is a transaction where one party engaged in the sale, transfer or lease of real or personal property with another person delivers a written instrument, money or other items for disbursement upon the happening of a specified event or the performance of a specified condition.

Simply stated, the escrow holder impartially carries out the written instructions given by the principals. This includes receiving funds and documents necessary to comply with those instructions, completing or obtaining required forms and handling final delivery of all items to the proper parties upon the successful completion of the escrow.

The escrow must be provided with the necessary information to close the transaction. This may include loan documents, tax statements, fire and other insurance policies, title insurance policies, terms of sale and any sell-assisted financing, and requests for payment for various services to be paid out of escrow funds.

In the transaction is dependent on arranging new financing, it is the buyer’s or his agent’s responsibility to make the arrangements. Documentation of the new loan agreement must be in the hands of the escrow holder before the transfer of the property can take place. A real estate agent can help identify appropriate lending institutions.

When all of the instructions in the escrow have been carried out, the closing can take place. At this time, all outstanding funds are collected and fees such as title insurance premiums, real estate commissions, termite inspection charges are paid. Title to the property is then transferred under the terms of the escrow instruction and appropriate title insurance is issued.

Payment of funds at the close of escrow should be in the form acceptable to the escrow, since out-of –town and personal checks can cause days of delay in processing the transaction.

As a Reno/Sparks real estate professional I encourage all questions and comment on the Reno/Sparks real estate market or any article posted.  I can be reached by email at chance@ballard-company.com or http://www.myspace.com/chancegates