Closing costs on new home
 

First of all I want to thank all the seasoned posters for all your sage advice. I have been reading here for over two years and have learned so much. I hope to some day pay it forward and be in a position to offer advice to newbies.

I have searched the archives and haven't found the exact information so I am requesting your help on this issue: We are closing on our new home on Oct. 17. We are paying cash at closing. When we paid the down payment in August the sales agent gave us an estimate on closing costs to cover pro-rated bond, property tax, trash, etc. It seemed reasonable to us. Yesterday we received a call from Citizen's First to set up a time for closing. I asked that they email a copy of the closing costs. Well we received it today and I hope that I'm reading it wrong, but the fees are several thousand more than what the sales agent gave us in writing!!!

Here is an example of costs listed on the Settlement Statement: state tax/stamp-$1200, permit/impact fee-$3700, utility/water conservation $3000Does the seller (TV) pay these fees? Please tell me yes. :faint:

We recently closed and it was also an all cash deal, so our closing costs were about $850. We bought preowned, so there was no bond, and we considered the closing costs very reasonable. After closing we were refunded approximately $250 because we had paid for the home inspection prior to closing but the inspector had neglected to mention this to the attorney who handled our closing. We also just received a credit for $35 because we had overpaid on some of the prorated utilities.

Welcome to The Villages! Your numbers sound about right....The Developer takes every, and I mean every opportunity to put costs that are "normally" seller's responsibility on the buyers.
As a Florida Real Estate Broker for 20 years, I have never, ever, seen such a one-sided contract as those used by TV. But it is their way or the highway. They have the product and they make the rules. Swallow hard....welcome to TV!

On the settlement statement, at the top of the column you're reading, it should say "Paid from Seller's Funds at Settlement". I just checked my closing statement (from Jan, 2010) and all the costs you mentioned were paid by the developer.

We closed last OCT --all those fees listed were paid by the seller --we had no surprises at all--easiest closing we have ever had !!

Good Luck

:wave: BnCinME,

Congratulations on your upcoming closing! I'm excited for you.

It sounds like from other responses, these will not be unexpected costs to you. (I don't know first hand, as we purchased resale.)

However, for your own peace of mind, so you won't sweat it for the next couple weeks, please call Citizens First and double-check. Then post and let us know what you find out. It might save a scary moment for other soon-to-bees.

Plus, I don't want to sweat for you either. :)

This is completely and absolutely right. We paid cash. Just two weeks ago. The Villages paid those closing costs. Very low closing costs.

If you take a loan than your closing costs are higher because of the fees of the loan.

We have bought and sold homes in The Villages and our experience is;

1>When buying a new construction home from The Villages, the buyer pays the major cost of the transaction. (2006)

2>When buying a pre-owned home, the Seller pays the major costs of the transaction. (2009)

Having experienced this in the past, we will never buy another "New construction" Home. Also the bond is alot lower on pre-owned home.

I am putting this here again Out FRONT because we TOO have bought two brand new homes here in the past three years. The seller, The Villages paid almost ALL of the closing costs. So I respectfully disagree with Bikerdog.

BUT if you borrow part of the money.... The closing costs on loans these days is VERY HIGH comparitively.

If you take the price of the bond and in your mind add it to the home then you will get the price of the home in the way homes are priced elsewhere. (Builders figure in the price of the infrastructure in other places in the U.S.)

So for instance a Gardenia of approximately 2000 square feet on an interior lot would really cost aproximately 265K instead of the listing price of 242K...adding in about 23k for bond.

Now there are many, MANY pluses to buying a resale. The previous owners will probably have put in pull down stairs in the garage, downspouts all around the house, finished the garage floor, painted the interior walls, had the driveway painted, put in extra towel racks and shelving in bathrooms, added solar tubes,customized closets, paid down the bond some or paid it off, and perhaps are selling it furnished.

So as I have said before and will say again. It is all a matter of personal choice.

AND I DON'T WORK FOR THE VILLAGES. I am a very happy resident.

New Villager
 

I'm not sure were Biker Dog is getting his information from or maybe his memory is not what it used to be. We closed on a designer home on the 28th of this month. Closing cost of Recording Fees $10.00, State tax stamps $2,555.00, Permit/Impact fee $3,689.90, Notary & Processing fee $190.00, Mailbox fee $90.00, Utility/Water Conservation $3,000.00 and Underground Elec/Meter fee $275.00 were all paid by the seller. I'm sure if you call the closing department they will clear this up for you.

Paragraph 5 on my purchase agreement for my lot states that document stamps on the deed, building permit costs, impact fees, water/waste water fee, aid of construction for utilities, mailbox fees and the cost for recording the deed shall be paid by the seller (TV).

I don't know why the people that put out bad information about closing costs, and impact fees, push the resales at the same time, but there seems to be a pattern to it.

Times have changed... When I bought new back in 2006, the buyer paid most of these closing costs. Somewhere along the line, the Developer changed his approach and now covers these costs. So, biker dog is correct for when he purchased but terms and conditions do change.

Thanks Villages07
 

We bought before you and yes at that time we paid the closing costs.
I saw how people were treating dog so I decided to stay out of it rather than be called a liar.
Wish people would realize everyone's experience is individual and this is a big place with different areas having different problems.
We have been here a long time and everyday I learn things that only the people involved know about.

Biker Dog was correct in his post and "Clearly" stated his new home buying experience was in 2006. Home buyers did pay New Home Closing costs at that time and they were between $8-10K on a Designer.

Thank you for all the responses. I emailed the office last evening and they left a voice mail today. The seller (TV) pays for everything except our pro-rated bond/tax, trash, etc. Phew! That's a relief. One more thing to cross off my list.

Now I'm off to research the archived posts for cable/internet/phone recommendations....

:agree:Thanks. As I said we bought our CYV in Sabal Chase in 2006 cash and the quoted estimate of cost almost changed our minds about going through with the purchase. When we bought our deisgner pre-owned the cost were minimal.
Then when we sold the CYV, we as the seller had to pay the high closing costa again.

So I do know what I am talking about, if you had read the dates of the original post and did a little bit of research you would understand.

Larry.

I read all of these posts and didn't see any that were disrespectful to Bikerdog, well maybe one, questioning his memory.

To correct misinformation respectfully is doing a service to our future friends and neighbors.

Kind regards,
Gracie

:agree:

???
 

Gracie,
Since you addresses me I will respond. My orginal post was not directed at you or any one person.

I see you EDITED your post and dropped the part where you said Dog was wrong.
He put the years he bought and he was right. Before you changed your post you had directly told him he was wrong.

I still haven't opened the two private messages you sent me. I want NO flames with you or anyone. I'm too busy and having too much fun! :a040:

End of this disscussion.

Again, have a great day and I mean it. Life here is wonderful. We are all so lucky to be here.

I did not edit my post Larry. It said and still says that I respectfully disagree.

I think it has been answered correctly but these fees were paid by the developer at my closing last December 2010. Of course I had pro-rated bond, insurance, taxes etc. that you have at any closing (new or re-sale). Hope this helps.

BnCinME, I'm glad you got your closing cost concerns relieved, and I hope your closing and move go smoothly! :wave:

For the record, the post Larry is referring to says (at the bottom):

Last edited by graciegirl; 09-30-2011 at 08:46 AM.

Anyways, glad to hear that the original question has been answered, and we can now go on to other things!...:laugh:

Taj. I missed the reason for this post. It said and still says that I respectfully disagree with Bikerdog. I didn't change it. It said that originally. Do you think that I was more critical of Bikerdog originally?? Do you think I was trying to hurt him or embarass him????

What is it that you wish to establish Taj?

For the record "edited" can mean any change. This doesn't mean Gracie changed her comment in question. Her word should be good around these parts!

You are correct. She could have edited the post for any variety of reasons. The thing is, Larry said she edited the post and Gracie gave him a hard time about it. Gracie mistakenly said she did not edit the post. The post obviously shows it has been edited.

Don't shoot the messenger.

Hi BnCinME,
Ditto what Schaumburger said!

Oh , no ! The problem is that there isn't a clear answer, or not one a realtor wishes to give. I understand they may not want to be committed to a number that isn't exact, but a good ball park estimate would be appreciated. My daughter kept trying to get the realtor to give a good estimate but she was told that she wouldn't get an estimate sheet until the mortgage process. When she requested the buyer pay closing costs she was told that the realtor hasn't seen that in 21 years of being a realtor in The Villages. She thought worse case perhaps $4,000. Now this has us nervous, contract of sale just faxed - nothing mentioned in paragraph 5. I guess there are various contracts floating around the Villages.

I agree with graciegirl and piashank. I don't know where the other information(s) came from.
If you are unsure, just double-check with your seller representative.

Biker Dog is correct. We purchased a Villa in May 2006 (village of Caroline) and we (the buyer) paid the closing costs mentioned by Biker Dog. Now-----in 2008 we purchased a Designer home in Hadley and the Developer paid those closing costs. The Developer up the prices to cover those closing costs. This was done because of complaints from purchasers.

In short, the costs are there and in a "real sense" you pay for them either in the price of your home or at closing. There are no free costs!

To clarify my post---both Biker Dog and Gracie are correct. In 2006 those closing costs mentioned by Biker Dog were paid by the buyer. Subsequently, this policy was changed and the developer paid those costs. The costs were put into the original cost of a new home. I trust this clarifies this issue/subject.

that principle applies to just about every business transaction involving the Developer

Another 2 year old thread revived :ohdear: