Real Estate Closing Costs Estimate

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Questions and Answers

What is the estimated selling price of the property?

  • $700,000.00
  • $600,000.00
  • $662,500.00 (correct)
  • $650,000.00

What is the total amount listed for approximate credits?

  • $500.00
  • $350.00
  • $200.00
  • $309.54 (correct)

Which fee is listed as $0.00 in the estimated costs?

  • Appraisal Fee (correct)
  • Documentary Transfer Tax (correct)
  • Escrow Fee (correct)
  • Title Insurance Policy (correct)

What is the amount for the Notary Fee?

<p>$50.00 (B)</p> Signup and view all the answers

What is the interest amount for the first T.D. between 11/01/04 and 12/02/04?

<p>$1,003.33 (C)</p> Signup and view all the answers

What is the total gross equity as listed?

<p>$363,546.02 (C)</p> Signup and view all the answers

Which additional fee is mentioned for the reconveyance deed?

<p>$170.00 (A)</p> Signup and view all the answers

What is the total estimated costs listed?

<p>$40,849.15 (B)</p> Signup and view all the answers

Which one of the following is not included in the encumbrances?

<p>Notary Fee (C)</p> Signup and view all the answers

How much is the brokerage fee based on the selling price?

<p>$33,125.00 (D)</p> Signup and view all the answers

What is the total amount of the estimated seller's proceeds?

<p>$323,006.41 (C)</p> Signup and view all the answers

How much is allocated for structural pest control repairs?

<p>$1,400.00 (B)</p> Signup and view all the answers

What is the estimated total costs incurred by the seller?

<p>$40,849.15 (B)</p> Signup and view all the answers

What is the amount listed for the home warranty plan?

<p>$330.00 (A)</p> Signup and view all the answers

What is the security deposits amount recorded in the estimates?

<p>$0.00 (B)</p> Signup and view all the answers

What is the total encumbrances amount mentioned?

<p>$298,953.98 (C)</p> Signup and view all the answers

How is the estimated selling price calculated in terms of brokerage fees?

<p>5 (B)</p> Signup and view all the answers

Which of the following is the estimated amount for the proration of property taxes?

<p>$309.54 (A)</p> Signup and view all the answers

Which fee has been recorded at $75.00 in the estimated seller's net sheet?

<p>Doc Prep Fee (C)</p> Signup and view all the answers

Which encumbrance is listed with a principal balance of $0.00?

<p>3rd T.D. (D)</p> Signup and view all the answers

Flashcards

Seller's Net Proceeds

The total amount of money the seller will receive after paying off all debts and closing costs.

Principal Balance

The amount of money owed on a mortgage.

Title Insurance Policy

A fee charged by a title insurance company, which insures the buyer against title defects.

Documentary Transfer Tax

A tax paid by the seller on the transfer of property ownership.

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Prepayment Penalty

A charge for early repayment of a loan.

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Bene/Demand Fee

A fee paid to lenders for services related to a mortgage loan.

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Prorated Interest

The amount of interest accrued on a mortgage loan between the time of the last payment and the closing date.

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Reconveyance Deed

A fee charged by a title company for recording the transfer of ownership of the property.

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Gross Equity

The estimated amount of money the seller will receive after all costs and expenses are paid.

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Projected Closing Date

The date when the real estate transaction is expected to close.

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Estimated Selling Price

The estimated price at which the property will be sold. It represents the projected revenue the seller will receive from the transaction.

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Total Encumbrances

A lump sum deduction from the Estimated Selling Price representing liabilities, expenses, and costs associated with the sale.

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Estimated Costs

Various expenses directly related to the property, such as repairs, inspections, and warranties. These costs are subtracted from the Estimated Selling Price to calculate the Estimated Seller's Proceeds.

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Estimated Seller's Proceeds

The estimated amount of money the seller will receive after all expenses, deductions, and liabilities are accounted for.

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Approximate Credits

An amount added to the Estimated Seller's Proceeds in some cases. It might include money from a purchase money note or other sources of income tied to the property sale.

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Estimated Seller's Cash Proceeds

The calculated amount of cash the seller will receive after factoring in all expenses, deductions, and credits.

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Estimated Total Costs

Expenses associated with selling a property, including brokerage fees, closing costs, and miscellaneous charges. These costs are subtracted from the Estimated Selling Price to estimate the seller's proceeds.

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Brokerage Fee

The amount of money a broker or realtor receives for facilitating the sale of the property. It is usually a percentage of the final sale price.

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Buyer's Closing Costs (NRCC/RCC)

Expenses incurred by the buyer during the closing process, such as title insurance, appraisal fees, and loan origination fees.

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Purchase Money Note

A loan for which the borrower makes payments over a period of time, and the loan is secured by the property being purchased. This loan is a source of credit for the seller, influencing their final proceeds.

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What are Seller's Net Proceeds?

The estimated amount of money the seller will receive after paying off all debts and closing costs.

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What is Principal Balance?

The amount of money owed on a mortgage loan, representing the buyer's outstanding debt to the lender.

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What are Approximate Credits?

An amount added to the Estimated Seller's Proceeds in some cases, potentially including funds from a purchase money note or other income related to the property sale.

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What are Estimated Costs?

Various expenses directly related to the property, such as repairs, inspections, and warranties.

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What are Estimated Seller's Cash Proceeds?

The calculated amount of cash the seller will receive after factoring in all expenses, deductions, and credits.

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Study Notes

Estimated Seller's Net Sheet

  • Seller: Mr. & Mrs. Seller
  • Property Address: 123 Equity Street
  • Closing Date: 12/2/2004
  • Date Prepared: 11/1/2004
  • Estimated Selling Price: $662,500.00
  • Type of Financing: Conventional

Estimated Costs

  • Escrow Fee: $0.00
  • Notary Fee: $50.00
  • Title Insurance Policy: $0.00
  • Documentary Transfer Tax: $728.75
  • County: Alameda
  • City: (Not specified)
  • Prepayment Penalty: $100.00
  • Interest 1st T.D.: $1,003.33
  • Interest 2nd T.D.: $1,410.85
  • Prorated Interest 3rd Note: $0.00
  • Reconveyance Deed(s): $170.00
  • Misc. Lender Fees: $0.00
  • Appraisal Fee: $0.00
  • VA/FHA Discount Points: $0.00
  • Doc Prep (drawing etc.): $75.00
  • Misc. VA/FHA Fees: $0.00
  • Property Taxes (1st Inst 2004/2005): $1,921.27
  • Other Liens: $0.00
  • Structural Pest Control Inspection: $0.00
  • Structural Pest Control Repairs: $1,400.00
  • Pool Repairs: $0.00
  • Appliance Repairs: $0.00
  • Home Warranty Plan to Fidelity: $330.00
  • Brokerage Fee (5% x S.P.): $33,125.00
  • Buyer's Closing Costs (NRCC/RCC): $0.00
  • Security Deposits: $0.00
  • Prorated Rents: $0.00
  • Administrative/Transaction Fee: $295.00
  • Seller's Property I.D.: $0.00
  • Courier 75/ Wire 25: $139.95
  • HOA Transfer Fee: $100.00
  • Other: $0.00
  • Estimated Total Costs: $40,849.15

Encumbrances (Approximate)

  • 1st T.D. Principal Balance: $(267,553.98)
  • 2nd T.D. Principal Balance: $(31,400.00)
  • 3rd T.D. Principal Balance: $0.00
  • Bonds/Liens: $0.00
  • Other Encumbrances: $0.00
  • Total: $(363,546.02)

Gross Equity

  • Gross Equity: $363,546.02

Approximate Credits

  • Property Taxes 12/02/04-01/01/05: $309.54
  • Prorated Insurance: $0.00
  • Impound Accounts: $0.00
  • Other: $0.00
  • Total: $309.54

Recap

  • Estimated Selling Price: $662,500.00
  • Total Encumbrances: $(298,953.98)
  • Estimated Costs: $(40,849.15)
  • Rent Back (days): $0.00
  • Sub-Total: $322,696.87
  • Approximate Credits: $309.54
  • Estimated Seller's Proceeds: $323,006.41
  • Purchase Money Note (if carried by Seller): $0.00
  • Proceeds From Sale of Purchase Money Note: $0.00
  • Estimated Seller's Cash Proceeds: $323,006.41

Property Taxes

  • Jan - June (2nd Installment): Property Taxes information for the 2nd installment period from January 1st to June 30th
  • July - Dec (1st Installment): Property Taxes information for the 1st installment period from July 1st to December 31st

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