Although many closing costs are completely negotiable, local customs and trends often determine the standards. The list below comprises most of the customary closing costs for sellers, in Taos County.
Sales Commission: Typically commission rate is 6% (3% listing side and 3% buyers side) for homes and 10% (5% listing side and 5% buyers side) for vacant land, of the contracted selling price.
Septic Inspection: This will vary depending on the company conducting the inspection & size of the home. Septic systems will also need to be pumped at the time of the inspection. Call several licensed inspectors to get quotes for this inspection.
Survey: If you have had a survey done in the last five years, normally the title company will only require you to obtain an ILR or Improvement Location Report. Costs of an ILR will start around $500. The cost of a staked boundary survey will be substantially higher.
Property Taxes: If not already paid, you will need to pay any property taxes up to the date of your closing.
Document Preparation: Is a fee, to prepare the Deed to convey your property. It is normally prepared by a local attorney. Fees start at $150
Escrow & Closing Fee: These fees vary by Title Company and are, in Taos, customarily split by buyer & seller.
Owners Title Policy: Insurance against loss resulting from defects of title to the property. Title insurance is a policy that protects the owner and/or lender by guaranteeing the title to the property is clear. An Owner's Policy provides assurance that the title company will stand behind you, if a covered title problem arises after you sell your home. The cost is calculated from the purchase price off a rate table and it will vary by company.
Gross Receipt Taxes: Commission paid to your real estate broker, will be taxed at either the city or county rate.
Loan Payoff: If you currently have a mortgage balance, the payoff, if any, will be deducted from your final net-out at closing, any second mortgages will also be paid from your proceeds.
Note to webmasters: you may reprint the above article in its entirety provided that you give credit in the form of an active link, please credit as follows: This article reprinted with permission of: www.TaosNewMexico.com