Real Estate - Buyer Closing Costs In North Carolina

It is important that buyers who are purchasing real estate have a basic understanding of what closing costs they will be responsible for when purchasing real estate.  Real estate transactions vary from state to state; therefore, there is no standard list of costs that will apply in all areas.  Below, you will find a list of typical buyer closing costs where I work in Pinehurst, North Carolina. 

                                                                                                Typical Charges

1) Attorney Fee                                                                  $500            -            $700

2) Survey (Condos $150)                                                 $300            -            $500

3) Title Search/Lender Policy Endorsement                            $250            -            $500

4) Recording Fees                                                                 $60            -            $80

5) Title Insurance

                        $2 per thousand for first $100,000

                        $1.5 per thousand for   $100,000 - $500,000

6) Home Inspection                                                                     $300            -            $500

7) Home Warranty                                                                      $300            -            $700

8) Application Fee                                                                  $300            -            $600

9) Appraisal                                                                             $275            -            $355

10) Miscellaneous Costs                                                   $100            -            $600

11) PMI (Private Mortgage Insurance (varies with lender)

1)      Attorney Fees - Unless you have experience in writing and filing a deed, you will need to hire a lawyer for deed preparation and recording.  Choosing the right lawyer to assist in closing can significantly reduce potential problems associated with purchasing a home.

2)      Survey � Before purchasing real estate, it is always a good idea for a buyer to determine whether buildings or other improvements are actually located on the property and that a neighbors' buildings or improvement do not encroach on the property to be purchased.

3)      Title Search � Lenders require a title search to determine if possible title defects, liens, mortgages, or easements are involved with the real estate in question. 

4)      Recording Fee � This is a fee paid to have the deed recorded, in our case it is recorded in the county courthouse.

5)      Title Insurance - Title insurance is required by lending institutions to cover possible costs related to title defects or even certain unrecorded liens that may be uncovered after closing.  Title insurance varies depending on the amount of the loan.  Lender title insurance does not insure owners, therefore, an owner may want to buy an additional buyers policy.

6)      Home Inspection � This is an optional inspection a buyer pays to have a trained licensed contractor make a 4-5 hour inspection of a property before closing.  A home inspector typically inspects the foundation, electrical, plumbing, and overall construction.  In addition to a home inspection, a buyer may wish to hire additional inspectors to evaluate the roof, heating system, septic system and any other systems or structures involved in the real estate transaction.  An inspection for wood destroying insects is generally requested by lending institutions.  It is recommended that all buyers have a yearly inspection for wood destroying insects.  If a home has a warranty against wood destroying insects I strongly suggest that if possible, the warranty be continued.

7)      Home Warranty � A home warranty covers the cost of repairs that a buyer may incur during a specified period of time after a real estate closing. Home warranty costs vary depending on what items are covered. 

8)      Mortgage Related Costs - Mortgage costs vary from lender to lender.  It is beyond the scope of this article to try to estimate what costs might be charged by various lending institution.

Dale Heck, the author of this article, is an experienced professional Realtor� serving buyers and sellers of residential real estate in Moore County North Carolina. Some of the communities served by Dale include Pinehurst, Southern Pines, Seven Lakes, Whispering Pines and Aberdeen. To learn more about real estate in the Pinehurst area, take a look at his websites, http://www.pinehurstrealestatenc.com, http://www.southernpineshorsefarmsnc.com,  http://www.pinehurstluxuryhomesnc.com, http://www.fortbragghomesnc.com where you will find additional articles, and current MLS listings.