Closing costs are fees paid at the time you close on the purchase or sale of your property. Closing costs are incurred by either the buyer or seller, and is done when the title is transferred to the buyer.

This information below represents a list of the normal fees associated with closing costs, but all deals are unique and there can be fees not included in this list.

Non-Recurring Closing Costs Associated with the Lender

Appraisal fee: cost varies. The property being appraised is collateral for your mortgage so the lender will want to verify that the property’s value is comparable to similar property based on recent sales in your area.

Credit Report: $7-$60. The lender naturally wants to verify your good (or acceptable) credit rating.

Flood certification fee: cost varies. The certification verifies whether your property is in a federally designated flood zone.

Flood monitoring: cost varies. This service monitors your property if and when flood zones are remapped.

Lender’s Inspection fee: cost varies. Also know as a 442, this inspection is for newly constructed property to verify that construction is complete with carpeting and flooring installed.

Loan discount: cost varies. These are discount points, each equal to 1 percent of the loan amount, in addition to the loan origination fee.

Loan Origination Fee: cost varies. This is also called “points.” Typically, the more you pay in points, the lower the interest rate.

Mortgage broker fee: They may also add in any broker processing fees in this area.

Tax service fee: $70-$80. This fee goes to an independent service that monitors your payment of property tax for the lender.

Other Lender Fees

Administration fee: cost varies. Either this or an underwriting fee will typically be charged.

Appraisal review fee: $75-$150. An appraisal review is usually done on higher-valued properties.

Document preparation: around $200. Even though lenders now can draw up their own documents without paying document preparation firms, you’ll still pay this.

Underwriting fee: $300-$350. This is the cost of putting the loan together.

Warehousing fee: cost varies. This fee isn’t seen much anymore, but you may end up paying it – it’s the cost of a “warehouse” line of credit.

Wire transfer fee: cost varies. This is the cost to transfer funds from one account to another.

Items required to be paid in advance

Homeowner’s insurance: cost varies. You are usually required to pay the entire first year’s insurance premiums at closing.

Mortgage insurance: cost varies. Some first-time homebuyer programs still require the first year mortgage insurance premium to be paid in advance.

Pre-paid interest: cost varies. This is the interest that will accumulate between the day of closing and the day the first payment is due, usually the first of the following month.

Up front mortgage insurance premium: cost varies. This is 2.25 percent of the loan balance, normally added to the balance of the loan. It is charged on FHA purchases of single family homes or planned unit developments.

VA funding fee: cost varies. This is paid to the Veterans Administration for guaranteeing your loan.

Reserves Deposited with Lender

Homeowners insurance impounds: cost varies. Lenders are allowed to keep two months’ worth of reserves in your impound account, so you will need to deposit two months’ worth of premiums to start it up.

Mortgage insurance impounds: cost varies. As noted above, most lenders allow mortgage insurance monthly, but you might have to put two months’ worth of premiums into an impound account for a reserve.

Property tax impounds: cost varies. Depending upon when taxes are due determines how much you will have to deposit towards taxes to start up your impound account.

Non-recurring closing costs

Closing/escrow/settlement fee: cost varies.

Courier fee: cost varies. This is the charge for sending documents back and forth between lender and borrower.

Home inspection: cost varies. This is an optional, but recommended, cost.

Home warranty: cost varies. Also optional, a home warranty usually covers such items as the major appliances, should they break down within a specific time. Often this is paid by the seller.

Homeowner’s association transfer fee: cost varies. This is the cost to transfer the membership from the seller to the buyer.

Loan tie-in fee: cost varies. Usually charged by the closing agent, this is for services they provide in dealing with the lender.

Notary fees: around $40. This is to make the document signatures legal.

Pest inspection: around $75. This inspection tests for pests and problems such as wood rot and water damage.

Recording fees: $40-$75. Charged to record documents with county government recorder.

Sub-escrow fee: cost varies. The title insurance company usually charges this for dealing with the closing agent.

Title insurance: cost varies. You pay this to make sure you have clear title to the property.

 

With the current inventory of homes being at its lowest, this might be the time for you to consider selling your current home and upgrading to a new home. Getting your current home ready to sell can be complicated, but it doesn’t have to be. This article gives you some common sense ideas to get your house in selling shape without breaking the bank.

A common mistake people make is to spend a lot of money – renovations, new roof, remodeling. While buyers will be impressed with these things, spending $5000 on remodeling will not add $5000 to your sale. Spend as little money as possible, and spend it on cosmetic, readily seen features like interior painting. The time to remodel is when you plan to stay in the house, not when you’re going to sell.

If you think about everything that needs to be done to sell your house, you might throw your hands up in despair, or at least feel some anxiety. Take one step at a time, one small task at a time. Break it down to manageable-sized chores and you’ll have better results.

First things first – have a garage sale. Whatever doesn’t sell needs to be set out for a Disabled American Veterans or Association of Retarded Citizens pickup. Once the clutter is cleared away, it will be easier to see what needs to be done.

This is your first impression, so it had better be a good one.

l Edge, mow and fertilize the lawn regularly. Make sure it’s well watered and reseed any sparse areas.

l Put a bright coat of paint on your mailbox.

l Trim hedges, weed lawns and flowerbeds, and prune trees regularly. Cut back overgrown shrubbery that looks scraggly or keeps light out of the house.

l Buy a new welcome mat.

l Check the foundation, steps, walkways, walls and patios for cracks and crumbling, and reseal if possible.

l If you have siding or brick, power-wash it. If you have a painted exterior, consider repainting in a neutral shade. This is especially important if there is any peeling.

l Make sure the porch light works.

l Clean and align gutters and downspouts.

l Inspect and clean the chimney.

l If the doorbell doesn’t work, repair or replace it.

l Repair and replace loose or damaged roof shingles.

l Repair and repaint loose siding and caulking.

l Remove oil stains from driveway and garage.

l If you’re selling in the winter, keep walks neatly cleared of snow and ice.Otherwise, keep the walks and driveway swept.

l Repair broken outdoor steps.

l Spring for some brightly colored potted outdoor flower arrangements for the front yard near the entrance.

l Keep your garage door closed.

l Wash the windows inside and out.

l Store RVs, boats and extra vehicles (anything that can’t be parked in the garage) elsewhere while the house is on the market.

l Paint the front door.

If prospective buyers walk into your house greeted by the smell of cat litter, cigarette smoke, mildew or pet accidents, there is little chance that even a reduced sales price will persuade them to buy. So the first thing to do:

l Clean, clean, clean. This includes walls, floors, inside closets and cabinets – everything. If you must, hire a cleaning service to come in and do the job.

l Get rid of clutter. Put away appliances you normally leave on countertops. This alone will make your house appear bigger and brighter. Clean out your closets, garage, basement and attic.

l Paint the walls and ceilings a neutral color – off white or beige.

l Repair cracks, holes and damage to plaster, wallboard, wallpaper, paint, and tiles.

l Replace broken or cracked windowpanes, moldings and other woodwork.

l Repair dripping faucets and showerheads.

l Buy new cabinet knobs and curtains for the kitchen.

l Shampoo all carpets, scrub and wax linoleum, wash and wax wood floors.

l Unclog slowly draining sinks and tubs.

l Clean out the fireplace and lay some logs in it.

l Mend torn screens. Clean out all window tracks.

l Check to see that all windows will open and close.

l Replace burned-out light bulbs. Use brighter light bulbs.

l Make sure every light switch works.

l Nail down any creaking boards or stair treads (drive two long finishing nails at opposing angles through the floor and sub-floor into the joist).

l Lubricate any squeaking doors

l Remove excess, worn or unattractive furniture.

l Thoroughly clean all appliances (especially refrigerator and oven).

l Replace old toilet seats and shower curtains.

l Clear all cobwebs from corners and doorways.

l Wash all light switches, handrails and doorknobs.

On Showing Days

l Keep draperies and shades open to let in the light.

l Place fresh flowers throughout the house.

l Have your home well-lit during showing.

l At night, turn on porch light and outdoor lighting in back if you have it.

l Set out colorful, luxurious towels in the bathroom.

l Avoid having dirty dishes in the sink or on counters.

l Keep any toys in the children’s rooms, bikes, wagons and skateboards in the garage.

l Play pleasant music at low volume.

l Spend the day of an open house away from home.

l Leave pets outdoors.

l Unless you’re selling it yourself, let the agent show your house, and don’t tag along.

 

Updating a bathroom can provide joy to your life, but also bring value to your home. Here are some ideas to help you with your choices from floor to ceiling.

Accessories: Accessories include decoration, wall hangings, art and sink essentials such as cups, toothbrush holders and the like. It’s a good idea to begin with a unifying theme—one that continues to be popular is the beach motif, with either sand-colored paint or shell-print wall paper, murals of shore scenes, seas shells in baskets, etc. Remember not to overdo it, as too much clutter makes a room appear smaller. Be sure to pick out your colors and accessories to match.

Clearances: All fixtures should be at least 30 inches apart, center-to-center, and 15 inches from the center to the nearest wall or obstruction. There should be 30 by 48 inches in front of the sink. Allow 24 inches around the toilet. Allow 45 by 30 inches in front of the tub. Allow at least 32 inches for all walking areas, including doorways. Double bowl vanities require 60 to 72 inches of space.

Colors: Bright colors add light to a room, especially which can be useful for rooms without windows. Pastel colors make the room appear larger. Too many colors in a small space can add to the busyness of a bathroom, not to mention stress out users. When in doubt, use white. It goes with everything.

Countertops: There are many alternatives on the market when choosing countertop finishes. Tile is still popular. Solid surfacing, such as Corian, Avonite, Nevamar and Wilsonart, gives the convenience of one-piece construction and tends to be low-maintenance. Fritztile is a polyester resin which can be laid like tile, but it is seamless with no grout lines. Formica is still a low-cost alternative.

Flooring: Whatever your choice, whether it’s carpeting, tile, wood or stone, the most important feature of bathroom flooring should be a non-skid surface.

Floor plan: A few simple rules apply here. For instance, you should never lay out the bathroom so that the toilet is visible from outside the bathroom, nor should it be the first thing you see when entering the bathroom.

Lighting: Most bathrooms have inadequate lighting, thanks to their lack of windows. It’s worth looking into installing a skylight or two to brighten up the space. If it’s not feasible, halogen and fiber optic lighting help to brighten up the bathroom.

Mirrors: Mirrors make any room look bigger. Fell free to use mirrors liberally in a bathroom space. Don’t put more than one per wall, however, as it adds to visual confusion. Mirroring an entire wall makes the bathroom appear twice as large.

Paint/paper: Any wall covering used in the bathroom must be water-resistant, but damp-proof as well. Unless applied properly, paint and paper can peel and bubble.

Safety: Protect all electrical outlets with a ground-fault circuit interrupter and place all switches more than 60 inches of water sources. Mount grab bars near toilets and tubs, and inside of shower units, ensuring that they’re installed into studs and not just drywall or tile. Install two grab bars in the shower, one at the entrance and one at the water source. Angle them at 45 degrees.

Showers: Showers have become more elaborate over the years. There are units costing in the tens of thousands of dollars, showers with hydro-massage, waterfalls, multiple shower heads, benches and electronic controls. If you’re installing a shower separate from your tub, it should be at least 32 by 32 inches. The trend is toward larger showers. Install swinging doors so they swing outward to avoid trapping the user. Benches or footrests should be at least 12 inches deep or more.

Sinks: The hottest design in sinks these days are vitreous china pedestal sinks because of their sleek lines and design details. Many people still prefer the vanity-type sinks because of their greater storage and surface area. It’s not necessary to have a double-bowl sink unless two people will use it at the same time.

Storage: Many wonderful, inexpensive cabinets, shelving and racks available. If there’s extra space near the toilet, buy a short cabinet in which to store toilet paper and toiletries. If there’s no space, an over-the-tank shelving unit may be best. Toilet roll holders should be mounted 26 inches off the floor to the front of toilets. Measure all storage doors to make sure they swing clear of fixtures. Don’t forget to allow storage space for cleaning materials, linens and medicines.

Tubs: There are now more than 400 styles, including whirlpools, Roman tubs, and spa systems. A few standards apply here. Platform-mounted tubs should be no more than one step off the floor. The step should be no more than 7 1/4 inches high and at least 10 inches deep. Sunken tubs are an accident waiting to happen. Faucets should be within reach from outside the tub. Install grab bars.

Ventilation: A bathroom without adequate ventilation can contribute to rotten drywall, peeling wall paper and bubbling paint. Installing an inexpensive fan (many come with lights in them) can reduce dampness.

RELATED ARTICLES

Palm Beach County Inventory Surges as More Supply Arrives for High-Demand Market

Palm Beach County total active listings rose year-over-year in June 2022, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.

MIAMI, July 20, 2022 /PRNewswire-PRWeb/ — Palm Beach County total active listings rose year-over-year in June 2022, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.

“After a historic year for home sales in 2021, more inventory is coming to the high-demand Palm Beach County real estate market,” JTHS-MIAMI President Brad Westover said.

Palm Beach County $600K to $999K Home Sales Rise in 2022
Palm Beach County total home sales decreased 32.4% year-over-year, from 4,030 to 2,724, , because of the rapid rise of mortgage rates from an average of 3% to 6% in six months and low inventory.

While down versus last year, Palm Beach’s home sales remain about on par with the last time the market had 5% mortgage rates in 2018 when Palm Beach had 3,095 sales in June 2018.

Palm Beach single-family home sales decreased 30.5%, from 2,117 to 1,442. Palm Beach condo transactions decreased 34.6%, from 1,913 to 1,252.

Palm Beach County homes prices between $600K to $99K increased for single-family homes, up 0.7% to 430 transactions, and for condos by increasing 5% to 125 transactions.

In June 2021, Palm Beach sales surged to a record-high because of 3% mortgage rates, higher supply (particularly in condos) and pandemic-driven demand.

In June 2022, Palm Beach sales were impacted by higher rates of 5-6% when contracts were established in April and May and lower inventory.

Housing is sensitive to rising mortgage rates. 2018 marked the last time mortgage rates hit 5%. Palm Beach June 2022 home sales finished about on par with the last time the market had 5% mortgage rates in 2018 when Palm Beach had 3,095 sales in June 2018.

South Florida: A Bargain in Comparison to Other Global Cities & Many U.S. Metros
Miami–Fort Lauderdale–West Palm Beach’s price per square meter is $3,170, far below at least 30 global cities and 13+ U.S. Metros including markets such as Hong Kong ($28,570), New York City ($17,191), San Francisco–Oakland–Hayward, CA ($8,250), Madrid, Spain ($6,173), Los Angeles-Long Beach–Glendale, CA ($4,740) and Seattle–Tacoma–Bellevue, WA ($4,460), according to National Association of REALTORS Profile of International Transactions in U.S. Residential Real Estate 2022.

Palm Beach County single-family home median prices increased 24% year-over-year in June 2022, increasing from $500,000 to $620,000. Existing condo median prices increased 31.6% year-over-year, from $237,500 to $312,500.

While median prices have increased nationally so has house-buying power because of a long-run decline in rates before March 2022 and the slow, but steady growth of household income. The First American Real House Price Index (RHPI) measures the price changes of single-family properties throughout the U.S. adjusted for the impact of income and interest rate changes on consumer house-buying power over time and across the United States. According to the latest RHPI, Miami remains more than 20% under its RHPI peak.

Home prices are determined by supply and demand. Lower supply and higher demand create higher prices. Demand for Palm Beach real estate is at all-time highs. Inventory for Palm Beach single-family homes (2.3 months) and condos (1.7 months) are low. Also, one of the supports for home prices is rents and rents are rising strongly.

Locally, the greater share of Palm Beach luxury sales is also part of the reason for the large year-over-year increase in median prices.

To battle national inflation, the Federal Reserve has aggressively raised rates this year and has plans for more hikes. High inflation and the Fed’s tightening policy are the main drivers behind rising mortgage rates.

Mortgage rates have risen from 3% in January to near 6% in July. On the same $300,000 mortgage, the monthly payment has risen from $1,265 in December to $1,800 today, according to NAR.

According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 5.52% in June, up from 5.23% in May. The average commitment rate across all of 2021 was 2.96%.

The mortgage rate is projected to land at 5.3% by 4Q 2022, according to NAR. That is still low compared to an all-time average of about 8% in the U.S.

Long term, the hope is higher rates will lead to more days on the market (gives buyers more choices). Higher rates will eventually lead to a moderation of the growth rate of pricing. With the growth rate of pricing cooling, total inventory could grow later. Historically, inventory expands six months after rates rise, but today’s market is unlike any other.

Palm Beach County Total Active Listings Surge in June 2022
Inventory of single-family homes increased 51.4% year-over-year in June 2022 from 2,260 active listings last year to 3,421 last month. Condominium inventory increased 8.3% year-over-year to 2,408 from 2,224 listings during the same period in 2021.

New listings of Palm Beach single-family homes increased 11.9% to 2,286 from 2,043. New listings of condominiums increased 7.2%, from 1,592 to 1,707.

Months’ supply of inventory for single-family homes increased 76.9% to 2.3 months year-over-year, which indicates a seller’s market. Inventory for existing condominiums increased 13.3% to 1.7 months, which also indicates a seller’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.

Total active listings at the end of June 2022 increased 29.9% year-over-year, from 4,484 to 5,829.

Nationally, total housing inventory at the end of June was 1,260,000 units, an increase of 9.6% from May and a 2.4% rise from the previous year (1.23 million). Unsold inventory sits at a 3.0-month supply at the current sales pace, up from 2.6 months in May and 2.5 months in June 2021.

Palm Beach Real Estate Posts $306.4 Million Local Economic Impact Just in June 2022
Every time a home is sold it impacts the economy: income generated from real estate industries (commissions, fees and moving expenses), expenditures related to home purchase (furniture and remodeling expenses), multiplier of housing related expenditures (income earned as a result of a home sale is re-circulated into the economy) and new construction (additional home sales induce added home production).

The total economic impact of a typical Florida home sale is $112,500, according to NAR. Palm Beach County sold 2,724 homes in June 2022 and had a local economic impact of $306.4 million.

Palm Beach total dollar volume totaled $2.3 billion in June 2022. Single-family home dollar volume decreased 20.3% year-over-year, from $2.1 billion to $1.7 billion. Condo dollar volume decreased 22.55% year-over-year, from $783 million to $606 million.

Palm Beach Distressed Sales Keep Dropping, Reflecting Healthy Market
Only 0.4% of all closed residential sales in Palm Beach were distressed last month, including REO (bank-owned properties) and short sales, compared to 0.8% in June 2021.

Total Palm Beach distressed sales decreased 69.7% year-over-year in June 2022, from 33 to 10. Short sales and REOs accounted for 0.03% and 0.3% year-over-year, respectively, of total Palm Beach sales in June 2022. Short sale transactions decreased 85.7% year-over-year while REOs decreased 65.4%.

Palm Beach’s percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented less than 1% of sales in June, essentially unchanged from May 2022 and June 2021.

Palm Beach’s Percentage of Sales Continue to Outpace the Nation, State
In Florida, closed sales of single-family homes statewide totaled 28,296, down 17.2% year-over-year, while existing condo-townhouse sales totaled 11,796 down 27% over 15,491 in June 2021. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

Nationally, total existing-home sales transactions completed transactions that include single-family homes, townhomes, condominiums and co-ops, dipped 5.4% from May to a seasonally adjusted annual rate of 5.12 million in June. Year-over-year, sales fell 14.2% (5.97 million in June 2021).

The statewide median sales price for single-family existing homes was $420,000 up 19.7% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $324,900, up 26.4% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

Nationally, the median existing-home price all housing types in June was $416,000, up 13.4% from June 2021 ($366,900), as prices increased in all regions. This marks 124 consecutive months of year-over-year increases, the longest-running streak on record.

Palm Beach Real Estate Attracting Multiple Bids, Buyers Going Over-List Price
The median percent of original list price received for single-family homes was 100% in June 2022, equal to last year. The median percent of original list price received for existing condominiums was 100%, up 2.5% from 97.6% last year.

The median number of days between listing and contract dates for Palm Beach single-family home sales was 12 days, a 9.1% increase from 11 days last year. The median time to sale for single-family homes was 55 days, a 9.8% decrease from 61 days last year.

The median number of days between the listing date and contract date for condos was 11 days, down 42.1% from 19 days. The median number of days to sale for condos was 51 days, a 20.3% decrease from 64 days.

Palm Beach Cash Sales More than Double the National Figure in June 2022
Cash sales represented 54.3% of Broward closed sales in June 2022, compared to 52.7% in June 2021. About 25% of U.S. home sales are made in cash, according to the latest NAR statistics.

Cash buyers are not deterred by rising rates. The high percentage of cash buyers reflects South Florida’s top position as the preeminent American real estate market for foreign buyers, who tend to purchase with all cash as well as some moving from more expensive U.S. markets who can buy more with their profits from real estate sales.

Cash sales accounted for 63.2% of all Palm Beach existing condo sales and 46.8% of single-family transactions.

To access June 2022 Palm Beach Statistical Reports, visit http://www.SFMarketIntel.com