What are the typical closing costs? And who traditionally pays them?

Click the image to download a guide to customary closing costs.

Purchasing a home generally revolves around two things: emotion and money. In this post we’d like to address the money portion, in particular we’ll touch on closing costs. Customary closing costs are a huge part of buying a home and during the purchase of a home you’ll find escrow plays a huge part in calculating these closing costs.

Definition of Closing Costs: Fees and expenses, over and above the price of the property, incurred by the buyer and/or the seller in the property ownership transfer. Examples are title searches, closing services, loan fees and deed filing fees. Also called settlement costs.

Per the definition you can see there are two sides (buyer and seller) to the equation when determining closing costs. Below is a simple customary closing cost list. Keep in mind these are typical, but should not be considered hard fast rules, feel free to consult your real estate agent for more detail.

Typical Closing Costs for a BUYER:

  • One-half of the escrow fee (according to contract)
  • Lender’s title policy premiums
  • Document preparation (if applicable)
  • Tax pro-ration (from date of acquisition)
  • Recording charges for all documents in buyer’s names
  • Home Owner’s insurance premium for first year
  • Home Warranty (according to contract)Preview
  • Inspection fees (according to contract): roofing, property, geological, pest, etc.
  • All new loan charges (except those required by lender for seller to pay)
  • Interim interest on new loan from date of funding to first payment date

Typical Closing Costs for a SELLER:

  • One-half of the escrow fee (according to contract)
  • Work orders (according to contract)
  • Owner’s title insurance premiums
  • Real estate commission
  • Any judgments, tax liens, etc. against the seller
  • Any unpaid Homeowner Association dues
  • Home Warranty (according to contract)
  • Any bonds or assessments (according to contract)
  • Any loan fees required by buyer’s lender (according to contract)
  • Recording charges to clear all documents of record against seller
  • Payoff of all loans in seller’s name (or existing loan balance being assumed by buyer)
  • Interest accrued to lender being paid off, reconveyance fees and any prepayment penalties
  • Excise Tax (% based on county and sale price)

Buying or selling your home can be one of the biggest financial decisions of your life.  But knowing what to expect by being informed can make the process easier for you!

To download a single page guide to customary closing costs, click here!

The Two Ways to Order Title and Escrow Online

Two are better than one… (even when it comes to ordering title and escrow online)

We offer two ways to order title and escrow online.

Ordering title and escrow online is not a new thing for real estate professionals in Seattle, Tacoma, and the surrounding communities. But for us at Ticor, allowing our clients to place a title and escrow order online without logging in to myticor.com is a new thing.

In the past, we have required our clients to create an account on our site that stores basic information like what real estate brokerage they are affiliated with, their phone number, email address, and who their representative is at Ticor, etc. In reality, this is the most efficient way for users to use our website. When logged in, placing a title and escrow order is quicker because the order forms will already be populated with the Real Estate agent’s or Loan Officer’s contact information. This saves a bunch of time keying in basic info when it’s time to order title and escrow.

But, we realize that not everyone wants to register on our website and remember a username and password. So we have created a title and escrow order form that is available for users that are not logged in to Ticor’s website.  There are a few required fields that are necessary for us to identify who is placing the order of course.  But the rest of the form has the same familiar fields that our loyal clients are accustomed to.

Thanks for the orders!
Matt Sweet
Marketing / Technology Integration
Ticor Title

How Green is your Escrow Transaction?

Ticor is getting GreenerWe’re very happy to announce that we have recently fulfilled the requirements for becoming certified green in our Title & Escrow Plant in Renton and in our Escrow branches around the Puget Sound!  Quite simply, that means we are using technology to save paper, recycling more, and implementing more business practices that Reuse, Reduce, and Recycle!

Ticor has certified Green branches in the following locations:

The Ticor Dashboard is a prime example of one of the technologies that we use to reduce waste and facilitate a more efficient communication flow with all parties involved in escrow transactions. For a brief demo of our dashboard, click here.

Upon hearing of our newly minted status as Greener Title & Escrow people, one of our clients responded so positively, we decided to do an impromptu video to capture some of his enthusiasm about a more sustainable approach to handling real estate transactions!