Who Pays the Realtor Fee and Closing Costs?

A real estate agent can play the most vital role in your journey in buying a home. From getting you pre-approved to closing, having the right buyer’s agent can save you time, money, and hassle in your overall process. The service is invaluable to many home buyers but at what cost?
This article goes through the general realtor fees and closing costs in a real estate transaction.

How much does it cost to hire a buyer’s agent?

Typically, home buyers don’t need to spend any fees when hiring a buyer’s agent as the seller usually pays the commission for both the seller’s agent and the buyer’s agent.  In Texas, the average realtor commission equals about 6% of the home’s sales price, which is split between the two representing realtors.
While you aren’t directly paying the buyer’s agent out of your pocket, they still have to get compensated somewhere.  When you ask a buyer’s agent for his service, you are implying that you will write an offer through that agent.

Closing Costs Breakdown:

  • Lender’s title insurance and endorsements
  • Record warranty deed
  • Record deed of trust
  • Courier fee
  • Escrow fee
  • Tax service fee
  • Full-year Homeowner’s Insurance Policy
  • 2-3 months Homeowner’s Insurance escrow
  • Tax escrow
  • Loan origination and/or discount fee
  • Appraisal
  • Credit report
  • Lender document preparation
  • Flood certification
  • Mortgage insurance premium
  • Miscellaneous loan fees
  • Homeowners’ association dues and fees
  • Inspection fees: roofing, geological property inspection, etc.
  • Any other costs as outlined in the real estate contract
  • Loan payoff per existing Lender’s payoff letter
  • Record release of existing lien(s)
  • Current year real estate tax proration
  • Prior year’s property taxes still due
  • Homeowners’ association dues and fees
  • Escrow fee
  • Commissions per listing agreement
  • Tax certificate
  • Attorney document preparation fees for deed release(s)
  • Homeowner’s transfer fee
  • Any other costs as outlined in the real estate contract
  • Owner’s title insurance
  • Survey endorsement
  • New survey
  • Home warranty

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