Our real estate agents know most buyers come to the process with many questions. Even if you have done it all before, it's helpful to get updated advice from an expert. One area of confusion is the costs buyers need to cover during the selling process.

Miami homes for sale get plenty of interest from buyers all throughout the year. That said, even the most qualified buyer needs to be prepared for some costs over and above the asking price of a home. What's more, some of these additional costs can't be rolled into a financing package.

With that in mind, it's best to know what you're getting into!

What Are Closing Costs and Who Pays Them?

Both buyers and sellers typically contribute to closing costs, but the buyer can expect to pay for the majority of these costs. Most are paid near the end of the home sale process before the home's title changes hands. Buyers usually pay closing costs equivalent to about 3% to 4% of the home's price.

By comparison, a seller will usually pay around 1% to 3% of the home's selling price for their share of closing costs. In rare situations, a buyer might negotiate to have the seller pay more or all of the closing costs, but the opposite is much more common.

Let's look at some specific types of closing costs you may be responsible for:

• Property Taxes
  Property taxes are usually prorated so that the new owner of the property will pay them only through the end of the current year. There may be other arrangements depending on where you are. In some cases, the seller has already paid taxes for the year and may raise the asking price to compensate.
  
  
• Homeowner's Insurance
  Homeowner's insurance is required for virtually all properties that receive any financing. If you buy in cash, you may be entitled to reduce homeowner's insurance or even to skip it entirely in some areas. Homeowner's insurance can be much more expensive in places prone to fires, floods, and storms.
  
  
• Title Check
  The "title check" refers to a multi-step process where a real estate attorney or dedicated title agency verifies legal ownership of the property. It ensures that there are no liens or judgments against the property that the seller would need to deal with before the sale can be finalized.
  
  
• Appraisal Costs
  In order to finance a home, the lender must be sure that the amount of financing does not surpass the value of the home. If the appraisal comes up short, then the loan package will have to be adjusted. This can result in substantial delays of days to weeks, depending on the lender's policies.
  
  
• Loan Origination Fees
  Loan origination fees are almost always calculated as a portion of the total financing package and can be anywhere from 1% on up. This is where buyers with cash in hand achieve some of their best savings.
  
  
• Survey Fees
  A full property survey may be necessary in cases where the exact boundaries of the property are in doubt. When the boundaries are clearly marked (as by a fence), and documentation is strong enough, boundaries may not be in dispute and do not need to be verified.
  
  
• Home Inspection Fees
  The buyer almost always pays the full amount for the home inspection, which lenders require to ensure a home is habitable. This can range anywhere from $100 to $500 (for "rush" service.) Any major plumbing, electrical, or roof issues discovered may need to be resolved by the seller.

Contact us to find out more or get started with Miami, OK real estate.