Many people will tell you that all your costs as a buyer are covered by the seller. Nothing can be farther from the truth. What is customary in one market is not the same in another, and customs and practices vary from neighborhood to neighborhood too!

        Everything is negotiable and that means everything that is allowed by current real estate law. When you enter into an agreement with another party, it is a contractual arrangement, and whatever price you agree on is what you are obligated to pay. It's contract law. However, let's get down to specifics about your costs as a buyer.

        Most Buyer brokerage agreements disclose the costs to the buyer that result from their representation arrangement with their realtor. For our standard Buyer representation agreement, there is a $195 Admin fee levied by Coldwell Banker. It is colected at Closing. If we dont find you a home, and you dont close, there is no charge. review this page to learn more about the Coldwell Banker admin fee and why our company chose this route rather than increasing the commission we charge.

        Once we write an offfer, you will write a check for the earnest money, the amount of which varies by the area of town, the asking price of the house, and the strategy that you and your agent agree to use, among other factors. That check will normally be held until the offer is accepted by both the seller and the buyer, and then it is deposited into the broker's escrow account, and will be credited back to you at closing.

        During your inspection period there will be various costs for inspections by outside professionals to assist you in determining the condition of the property. Typical costs for these inspections vary according to the size of the home and the specific inspection you need, but estimate $3-500 for a home inspection; $100 for a termite inspection; $100 for radon testing, $2-300 for septic. Other specialized inspections are available including stucco, structural, plumbing, electrical, HVAC, etc. Additionally, your mortgage company may specify that certain inspection MUST be done according to the loan program that you have applied for (termite, flood zone, survey). You will be referred to the right source for obtaining more information about choosing inspectors at the appropriate time: remember to ask them about their qualifications, warranties, costs and what written reports they provide.

        All of these costs are borne by the buyer and most are not related to obtaining your loan or closing the property. Those costs are separate and should be planned for. To determine the closing costs associated with your financing package, you must talk with your lender and obtain a Good Faith Estimate (GFE). And then call your loan rep again to have them explain the GFE to you. All lenders do not estimate closing costs in the same way, so when comparing GFEs it can get very confusing. A simple rule of thumb follows: aside from your total down payment, estimate 2-3% of the loan amount for closing costs, and then add in attorney's fees and other costs not associated with the loan. It is nearly impossible to get this number exactly correct until the day of closing when the closing attorney has all the figures on the HUD-1.

        Also to be included in the closing costs are items such as title Insurance, Title search and Examination, state taxes (tax stamps), post closing duties (recording fees), Georgia state transfer tax, and your loan escrow pre-paids as well as prorations of property taxes and association fees. It is important to note that if your are usig two mortgages to prurchase the property, the paperwork is double for the closing attorney, and the document preparation fee will change accordingly. Lastly, if you physically will not be present for the closing, there are additional fees for doc prep, power of attorney, and remote execution of the documents wherever you are.

        One last expense is important, and that is the home warranty. Most buyers will ask the seller to provide one, which provides coverage for the buyer for one year after closing. If the seller does not provide one for you, you whould purchase one yourself: cost varies from company to company, but $450-550 woud be a good estimate.

        Finally, dont forget to budget for moving-in costs. these include deposits for utilities, your moving expenses, costs for moving our of your current property, etc.