Closing Costs

[Michael Campione]

Anybody have a take on what is high and what's low when it comes to Closing costs.
And would it be concidered common to add closing costs to the price and a check back from the seller?
Looking in Collin, Dallas counties.

[Ryan Webber]

Typically in Texas the seller pays for the title insurance policy (typically but is still totally negotiable), which runs roughly 1% in Texas. Any title company can give you a print out of the prices (they are regulated in Texas). You will also have prorated ad valorem taxes (county property tax) coming from the seller (normally from October on the seller pays the entire taxes for the year and you pay the prorated portion back to the seller on the HUD1). Again this is completely negotiable, but normally the seller pays their prorated portion. Taxes can be found on your county's appraisal district (normally online). Other fees include attorney fees for the deed (normally about $200-300, recording fees ($20-$100 depending on the type of transaction), an escrow fee (normally about $100 for each side), a tax certificate ($15), and your loan fees.

I normally don't add closing costs on top of my offer. I treat it as an expected expense to the seller. In Texas the seller will normally pay for the title policy, prorated taxes, and usually half of the attorney fees.

Now I will use closing costs as a negotiating tactic if I need to. Saying I will pay closing costs (not including taxes) to get the deal done if my original offer is rejected. For some reason sellers expect to pay their portion of taxes no matter what, so there has only been one time that I actually didn't receive prorated taxes from the seller.

And as Ohio Realtor stated, receiving money after closing is not legal, but receiving money AT closing can be common after you are creditted the prorated taxes. About 90% of my deals I walk out of the title company with a check. Now I am not MAKING money at closing, because I will either owe it when I sell it or I will have to pay the county taxes. Also, when you are buying a rental property, you will receive prorated rents and deposits on the HUD1, which can dramatically increase the check you walk out of closing with.

Sometimes you will have to bring money to closing, though. It depends on your loan amount, earnest money, and prorations.