# Closing cost$



## knutty (Aug 3, 2010)

Really don't know much about this and having a difficult time trying to find definitive answers, any information you can share would be greatly appreciated. Does anyone have experience/knowledge of what the bare minimum requirements are as far as documents and paperwork to sell a house? The home is in Oklahoma and a local title company there estimated 1300.00 for closing costs. That just seemed ridiculously high to me given the situation. The house is paid off, no mortgage, it is in very bad shape, selling as-is for less than 10,000, and taxes are minimal, like 50 bucks. We have a buyer that will pay cash, but doesn't want to pay any closing costs, he will pay cash and not have a mortgage, so there are no lenders involved. Want to make sure we do this legally, just don't want to waste money paying for things that aren't necessary. 

Here's the deal, elderly family member passed away leaving a home to her son and daughter, house was paid off years ago, they have the deed/title, a warranty deed from 2003 and a title transfer to the son and daughter was just done. The home was built in the late 1800's and is in terrible condition, water damage from a burst pipe, foundation issues, electrical, everything needs tons of work. Family all live too far away to work on the house and/or not willing to gamble it would pay off to have all the work it needs done.
Thanks,


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## oregon woodsmok (Dec 19, 2010)

I've had closing costs run all the way from $800 to $5,000.

If there is no buyer's mortgage that saves a lot of fees and maybe no appraisal costs (? you don't say). But taxes will be prorated, there will be recording fees and stamp tax. Courier fees and the fees for the escrow company, plus a few little taxes and fees scattered here and there. How about an inspection? Termite inspection, water quality evaluation? Are you paying for those out of escrow?

Is there a hold-back to guarantee clean-up?

Contact a couple of different escrow company's but I'll bet you don't find a lot of difference.


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## willow_girl (Dec 7, 2002)

Ask for a breakdown of the closing costs. Some of the costs will be legitimate, like title insurance or a recording fee from the county. Others are merely padding -- easy money for the bank! I have had much success in negotiating away some of these fees. I'd ask for at least a 50% reduction in the bank's fees without batting an eyelash.

Give us a list, and I'll try to help you sort out what's what.


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## knutty (Aug 3, 2010)

Thank you both very much for the information. I guess everything is negotiable, I'll contact a couple other title offices and see what they'll do and ask for a breakdown of the costs also. I know 550.00 of the cost quoted was for an abstract title. The recording fee was very low, $13 I think. Both those I assume are legitimate costs, the rest of it I didn't understand to well.

As far as a termite inspection and water test, that hadn't even occurred to me that would be needed since the house is not anywhere near live-in condition without major work. Are those required to close? The person who wants to purchase the house buys properties to rehab, he knows the problems with the house and what he's getting. He hasn't mentioned getting any inspections. The house is being sold as is, so I don't think there would be a hold back for clean up, but like I said really don't know much about this stuff. I've bought houses before and had the usual appraisals, home inspection, termite inspection, paid several thousand for closing costs, etc., but never sold or bought a house outright for cash, or one in non-livable condition. Thanks again, and I'll probably have a ton more questions after I get a cost breakdown.


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## boxwoods (Oct 6, 2003)

In New York State, which I've done numerous times is Draw up an Indenture and give it to buyer for his cash. Buyer records it with the County. County sends the buyer a new deed. Simple as that

Whatever you work out for adjusting taxes etc is between you and buyer

If buyer wants to do a title search, then that is buyers cost. No lawyers are needed for a sale of a home. In N.Y State anyway

Go to your County clerks office and find a indenture that someone else has filed, and use that same format. Basically it is a bill of sale with the property description added to it, signed and notarized by the seller.


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## TJN66 (Aug 29, 2004)

Very interesting!


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## Evons hubby (Oct 3, 2005)

Closing costs can vary widely from the cost of having a deed prepared and recording it to thousands if its a large purchase with all the "amenities" such as title insurance, inpsections, surveys, and mortgage fees. Attorneys in our area charge right around a hundred bucks for drawing up a new deed. Recording the deed usually runs around another twenty or twenty five. If there is no loan involved that eliminates many of the costs normally involved with the closing. (appraisals, points, origination fees... etc) If the buyer is satisfied with the property where is as is... then there are no inspections to be paid for, or no surveys. Legally (in my state) seller or buyer can draw up the deed eliminating that cost and recording it really isnt "required" but I strongly recommend it. I also strongly recommend having an attorney do a title search. If one has satisfied themselves as to boundaries by talking to the neighbors a survey is not usually required either.


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## Dutchie (Mar 14, 2003)

Where in OK is the house located? Whenever I buy or sell real estate in cash deals I do the paperwork myself. All that is really required is a Purchase and Sales Agreement, signed by both the buyer and seller. These forms can be downloaded on line or bought at a Staples type store.

Then you need to have the abstract brought up to date, which is what can be costly and needs to be done by a title co. And then the transfer of ownership needs to be registered in the County Court House which can be done by the buyer or seller.

Like Willow said, list the charges here and we'll sort through them.


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## willow_girl (Dec 7, 2002)

I would recommend paying for a title search. If there are problems in the chain, you want to find out BEFORE buying -- not when you're trying to sell it later! :teehee:


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## PaulNKS (Jan 11, 2009)

i would think it shouldn't be that high. You say there's no mortgage, so no bank involved. It would be primarily, the title company fees, title insurance, recording fee, any taxes due to the date of sale. Since you are selling as is, there should be no inspections or surveying costs.

If he says he wants to pay no closing costs, I don't know. When we've bought or sold, we usually split some of the costs such as the title insurance, recording fees, etc.


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## cindy-e (Feb 14, 2008)

closing costs on the house we are trying to buy are about $18,000. Sigh...

Cindyc.


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## Dutchie (Mar 14, 2003)

willow_girl said:


> I would recommend paying for a title search. If there are problems in the chain, you want to find out BEFORE buying -- not when you're trying to sell it later! :teehee:


That is what we call here "bringing the Abstract up to date" which is a requirement here in OK.


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## Dutchie (Mar 14, 2003)

cindy-e said:


> closing costs on the house we are trying to buy are about $18,000. Sigh...
> 
> Cindyc.


Holy cow!!!! How much are you paying for the house?


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## Evons hubby (Oct 3, 2005)

cindy-e said:


> closing costs on the house we are trying to buy are about $18,000. Sigh...
> 
> Cindyc.


Yep, sounds like one of those full blown deals with all the trimmings. Weddings are about the same... twenty bucks for the jp... or if you want all the extras... a bit more.


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## PaulNKS (Jan 11, 2009)

cindy-e said:


> closing costs on the house we are trying to buy are about $18,000. Sigh...
> 
> Cindyc.


Is that also including your down payment? Why is it so high?


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## knutty (Aug 3, 2010)

Wow, thanks everyone. I've learned more just since posting this yesterday from all your replies then I had talking to title companies and real estate agents. 

Dutchie, the home is in Newkirk, OK. I'll ask the buyer if he is ok with doing this the way you described. Seems to me it should be that simple, an up to date clear title and sales agreement. 

Cindy, do those closing costs include a live in butler and limo driver?:shocked:


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## cindy-e (Feb 14, 2008)

PaulNKS said:


> Is that also including your down payment? Why is it so high?


all inclusive, plus the bank is requiring us to have 2 months of payments in the bank before they will close. Also, seller went through a bankruptcy so they can't pay any part of closing costs. We are paying a lot for this property, but 100,000 to 150,000 LESS than the average price of a house around here, and this one has useable acreage... so in my context, it is a good deal. I don't like that it costs so much, but it is what it is. 

FWIW,

Cindyc.


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## AR Aaron (May 26, 2010)

cindy-e said:


> closing costs on the house we are trying to buy are about $18,000. Sigh...
> 
> Cindyc.



yeah, holly cow that's absurd unless you have down payment included in that figure. :nanner:


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