What are Typical Closing Costs?

[luvsvacation22]

I wanted to know what is the typical general amount of closing costs you would expect to pay? What would you consider excessive costs?

 

[aliikai2]

For a buyer of a unit that you can control who you use to close, as low as $115 without escrow, to $450 with. Each unit, state, country is going to have different costs and requirements, in NYC $1500 is normal cost, In New Orleans, $850 is normal, it all depends.

Greg

I wanted to know what is the typical general amount of closing costs you would expect to pay? What would you consider excessive costs?

 

[vacationtime1]

$300 - $400 for a deeded unit within the continental United States. This excludes title insurance (seldom necessary) and fees to register the transaction with the HOA.

More in Hawaii. Less for non-deeded interests (right to use, trust points, memberships).

As I'm sure you have noticed, many eBay sellers demand that you use a specific escrow/title company that charges more. These sellers often use escrow companies with which they have financial arrangements. Think of the excess fee as part of the purchase price and do your analysis accordingly.

 

[luvsvacation22]

That is what I thought...what would you think if someone charged $600.00 for closing costs alone for state of California? Don't you think that's excessive?

 

[TUGBrian]

There are a number of TUG supporting businesses that offer closing services for cheap and have been used/recommended by TUGGERS over the years...I always suggest individuals contact multiple closing companies and ask. be sure to mention you are a TUGGER!

http://www.tug2.net/busiads.shtml

 

[theo]

Not enough information...

...what would you think if someone charged $600.00 for closing costs alone for state of California? Don't you think that's excessive?

"Transfer fees" are (...sometimes, but not always) gratuitously imposed by the resort (or the resort parent company if within a "chain") to "process" an ownership change. It's a bit of an outrage, since it takes all of about 30 seconds to change the owner name and address in their owner (i.e. maintenance fee bill recipient) database. Transfer fees are never included within any closing company's fees.

Wyndham now charges a $299 transfer fee for each ownership change. Legacy Vacation Club (the reincarnation of bankrupt Celebrity Resorts) charges $200 for their "transfer fee". I've heard of far larger transfer fees imposed by some Mexican timeshare banditos. It's "legal larceny", but it's also unavoidable...

In short, the $600 closing cost you cited might include several hundred dollars in resort "transfer fees".
I don't know; you didn't say. If so, the total cost cited may not be unreasonable. If not, that $600 closing cost figure is very hefty indeed.

 

[luvsvacation22]

Thank you all! It was just closing costs not transfer fees. I wanted to see if what I thought were normal closing costs verses excessive closing costs were correct and by your responses they were. Thanks again!

 

[Ron98GT]

That is what I thought...what would you think if someone charged $600.00 for closing costs alone for state of California? Don't you think that's excessive?

Yes, very.

You'll see a lot of listings on ebay where they want $499, which I think is high for just closing costs. If the $499 included title insurance, which I've seen, that would be a little better. If the $600 you quoted is for the closing, title insurance, and transfer fees, that sounds more reasonable. But it could also be relative to the sales price. Either way, $299 for just closing costs would be better.

 

[richardm]

The following are estimates I routinely use for independent third-party closings. I use a sliding scale with the base cost determined for a sales price up to $5,000. For each additional $1,000 in sales price- I'll add an additional $10. to cover stamps.

These estimates do not include any credit card processing fees, broker fees, courier fees, resort estoppel fees, or resort transfer fees which can add significantly to a Buyer or Seller realized cost.

Also, some closing agents will now require either a title search or lot book report to be purchased even if you are not buying a title policy. This policy varies by closing agent.

There are also a few other issues buyers should always be aware of when purchasing a timeshare located in California.

Taxes are always billed separately. You will want to ensure your closing agent checks with the comptrollers office to discover if taxes are unpaid. If the prior transfer was not done correctly (a problem that is rampant these days with unqualified closing agents often working eBay transactions)- the current owner may not even be aware that several years of taxes are due. I have even seen a transaction that was in the process of closing, when the property was sold at auction for past due taxes.

Finally, if you do not know what the term community property state means- stop and research how the title to real estate is held in the state of California. This is another area of concern for consumers and is often a common mistake for unqualified closing agents.

If you would like a few referrals, contact me and I'll be happy to provide you with several closing agents you can call to request a specific quote for your purchase.

***

California: approx 10 to 12 weeks closing duration
Deed only estimated @ $395
Full closing with title insurance estimated @ $795

 

[JohnPaul]

Total Cost

I never worry much about what they call the various costs. I look at the total amount I'll have to pay and decide if it's worth it.