Who Pays Closing Costs in A “For Sale by Owner”?

Buying or selling in a “For Sale by Owner” (FSBO) situation will entail the same closing costs as any home or land purchase.  The only difference is the amount the parties will be paying.   Mainly, the savings is not paying a commission to a listing/selling agent.  However, if the buyer has an agent, the seller may be asked to pay the buyer’s agent’s commission, or a split of the cost.  With only one agent involved in the sale, that agent may end up carrying the deal and doing the bulk of the work.  The agent will, also, bring a buyer who is pre-approved.  The commission does not have to be a percentage of the sale, it can also be a flat fee.  The agent would work with the seller to negotiate these terms. Now, the seller does not have to pay the commission at all.  However, by doing so, there may be less buyers to work with.  If seller and buyer know each other, they may decide to work with lawyers instead of real estate agents to complete the sale.  This may eliminate any agents, but still involves the attorney fees.

Here is a breakdown of some of the costs that will be involved even if there is not a real estate agent involved:

FSBO Seller

  • Seller’s attorney fees
  • Transfer tax:  this may be paid by the seller, the buyer or a split between both parties
  • Survey:  Ashtabula County, especially, may require a survey before the property can be sold.  This status will be indicated with a stamp on the deed.  Surveys are not only an extra cost, they may add time to when the closing will occur, depending on how busy the surveyor is at the time.

FSBO Buyer

  • Loan origination fees:  If needing a mortgage for the purchase, there will be fees for prepping and evaluating the buyer’s mortgage.
  • Buyer’s attorney fees
  • Appraisal fees:  If obtaining a mortgage for the purchase, an appraisal will need to be done.
  • Inspections:  If the buyer chooses to have inspections done, this is a cost that will come out of their pocket.

These are just a few items to think about if you plan to buy or sell with the use of an agent.  Please click below for more fees that will may be assessed at closing.

Read the Original Article Here: Who Pays Closing Costs When Selling a House By Owner?