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- A seller's closing statement is much like a balance sheet. It lists your escrow number (the transaction number of the real estate deal), when the closing is, the settlement location, and the address of the property being sold. It also sets the disbursement date and other time frames pertinent to the deal.
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- Assumptive Close. An assumptive close comes after a lot of the work is over. You’ve done the searches, the showings, the mortgage pre approval and all the education that comes with the real estate process.
- Soft Close. The soft close is one of the best ways to test the waters and see how ready the client is to make the decision. In a soft close, as a buyer’s agent, you offer something to entice them to take the next step.
- Direct Close. Sometimes the best approach is the direct approach, and the direct close is just that. It’s simply asking the buyer for the sale. It shouldn’t be the first thing out of your mouth, naturally, but it can come after you’ve done all the prep work.
- Closing the Sale With the Hammer Close. The hammer close is a little more aggressive than the direct close. Ok, maybe a lot more aggressive. Instead of asking for the deal, you’re almost demanding it.
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- Debits vs. Credits on The Closing Statement
- “Financial”
- “Prorations/Adjustments”
- “Loan Charges to (Lender Co.)”
- “Impounds”
- “Title Charges and Escrow/Settlement Charges”
- “Commission”
- “Government Recording and Transfer Charges”
- “Payoff(S)”
- “Miscellaneous”
Like your typical budget balancing sheet, the settlement statement is organized into Debits (expenses) and Credits (deposits or increases) to the account. Other forms might have columns labeled as “Seller Charge” and “Seller Credit,” which mean the same thing. Now let’s get into the different spreadsheet sections on the closing statement.
The first part of the form, labeled “Financial,” details the price your buyer is paying, and then lists items that are debited against that price. 1. Sales Price of the Property:The final sales price, from which everything else will be deducted 2. Personal PropertyAny furnishings or personal property the buyer is paying for and you have agreed to s...
Under the Prorations/Adjustments section, you’ll see how much you might owe in property taxes (school or county taxes) or homeowner association dues for the period leading up to the time you hand over the keys. For instance, let’s say you close April 15, and the tax bill for January through the end of May is due June 1st. In that case, the seller w...
The next subhead, “Loan Charges’”details what the buyer’s mortgage lender is charging. You, the seller, may have agreed to pay some or none of these costs. It all depends on what you negotiated with the buyer during the closing process. 1. PointsMortgage “points” are additional fees due at closing in the event that the buyer “bought down” their rat...
At closing the buyer sets up an impound (or escrow) account that allows them to bundle the cost of their mortgage principal and interest, taxes, and mortgage insurance into one payment. A buyer might be required to pay some charges, like homeowners insurance premiums or county taxes, in advance at closing. 1. Homeowners insurance ___mo @ $ ___/moTh...
“Title Charges Escrow” or “Settlement Charges” are all fees charged by title or escrow companies for performing tasks like notarizing signatures. 1. Owner’s Title Insurance ($ amount)Provides insurance coverage to the new buyer in the event that unknown issues with the title emerge after closing 2. Owner’s Policy Endorsement(s)Tailors owner’s polic...
The “Commission” section refers to real estate agent commissions amounting to 5%-6%of the sale price on average. Commission fees are typically the responsibility of the seller, but the total commission cut will be split between the buyer’s agent and listing agent. 1. Real Estate CommissionOwed to the listing agent (representing the seller) 2. Real ...
Government recording and transfer charges are fees levied by the county, state, or municipality for recording the deed and mortgages of the new owner. 1. Recording Fees (Deed)Charged for legally recording new deed 2. Recording Fees (Mortgage/Deed of Trust)Charged for legally recording new mortgage 3. Recording Fees (Other)Any additional recording f...
There’s a good chance that when you sell your house, it isn’t completely paid off and you still owe on the mortgage. You’ll use the sale of your home to pay off your remaining existing mortgage. The “payoff” section of the seller’s closing statement details those amounts and any associated fees or charges. Lender: Payoff Lender Co. 1. Principal Bal...
And finally, “Miscellaneous” refers to any remaining transaction fees and charges. 1. Pest Inspection FeeA pest inspection before closingis separate from the home inspection and checks for signs of a termite infestation among other pest issues 2. Survey FeeFee to professional surveyor for drawing of the property being sold 3. Homeowners insurance p...
Oct 27, 2022 · The closing statement is prepared by an attorney and contains the purchase price. This statement also establishes any cost adjustments to be paid by the buyer or the seller. Lease Agreements. This document details the lease terms between the owner of the business’s real estate (the seller or a third party) and the buyer of the business.
Oct 10, 2023 · Overview of a Closing Statement: - Definition and purpose of a closing statement - Importance of reviewing it thoroughly. Understanding the Parties Involved: - Buyer, seller, lender, and other key stakeholders - Roles and responsibilities of each party. Key Components of a Closing Statement: - Sales price and purchase details
Jun 30, 2022 · Your closing statement is the form which lists the property to be transferred, any borrowed funds, and all costs to complete a real estate transaction. Different forms are used depending on the requirements of the transaction and the lawyers involved. The three most common are:
Learn what home buyers and sellers need to know about the closing disclosure, the appraisal, the down payment process, and other details, like home insurance, to make sure they are prepared.
Mar 26, 2024 · Whether you're a seasoned real estate professional or a first-time homebuyer, understanding how to construct a comprehensive closing statement is essential. In this guide, we'll delve into the intricacies of crafting a closing statement, providing examples and critical insights.
