Closing Costs in La Jolla
In La Jolla and other housing markets across California, home buyers and sellers should be mindful of closing costs that accompany each real estate transaction. These costs are primarily driven by the purchase price, but they can vary according to commission schedules and other factors. The most important thing to remember is that most closing costs are subject to negotiation, and that they are not legally binding unless they are clearly stated on the purchase agreement.
The Golden State of California features of the highest closing costs in the United States, and the La Jolla real estate market is not exempt from this. According to real estate analytics, the median sales price of a home in La Jolla through August 2013 was $945,000. Since various closing costs are calculated based on the sales price, sellers and buyers in La Jolla can expect to pay more than their counterparts in other parts of the U.S.
Who Pays for Closing Costs in La Jolla? After decades of modern real estate practice, buyers and sellers in California have come to accept certain conventions when it comes to figuring out who should pay certain closing costs. Most of these conventions are based on good faith and their reasonableness, although they can be openly negotiated.
Seller's Typical Closing Costs
- Real estate broker's commission, if they are represented by one.
- California transfer taxes at the state and county levels.
- Legal stamps.
- Balance owed on homeowners' association fees, if applicable.
- Property taxes due until the closing date.
- Outstanding liens and other encumbrances on title.
Buyer's Typical Closing Costs
- Homeowner's insurance.
- Home inspection fees.
- Earthquake shut-off valve for gas utilities.
- Escrow agent services.
- Title insurance.
- Fees associated with a mortgage, including: origination costs, down payment, appraisal fee, points on the loans, private mortgage insurance, flood search, title abstracting services, processing fee, and others.
Buyers and sellers in California should be aware of the potential burden of closing costs so that they can properly and amicably negotiate them.