Here’s what buyers and sellers typically pay for at closing in The Desert.

Hi, I’m Terri Munselle of the Munselle Group with compass in the Desert.
We are now in the opening week of season in the Desert!
This means our population just doubled with all the winter-time visitors who just arrived. Golf courses are reopening after a month and a half closed, with new grass that has come up and is strong enough for cart traffic… the country club opening parties are now in full swing!
We had approximately 900 properties on market the beginning of November…when our inventory should have been 3000 units going up. Monthly sales are down now due to the lack of inventory to around 800 units in October. I expect that sales number to go up for November even with our low inventory as these visitors are truly motivated to get a place now to enjoy!
I’ve been working with a lot of buyers new to California who ask what costs they will incur when they purchase a home here.
I, of course, have already reviewed the sellers’ costs when I take a listing so they know what to expect.
I thought today I would review the very basics of the costs on both sides. I am going to use a simple cash sale to show the very basics.


You will consult with a tax professional for further info needed and of course if you are getting a loan, your loan professional will let you know any additional costs.
But here is a basic cash sale with the general costs I’m discussing…
Disclaimer: Everything is negotiable. However, in CA each region has costs that are more generally paid for by one side or the other. It just varies.
The items I’m discussing would basically describe the costs I’ve seen for 99% of the deals I’ve done over the last 23 years. (Of course, Bank-owned and Short Sales… in the recession times… were a whole other ball of wax!)
First for the Buyer- If you are buying a $1M home and paying cash, your costs are basically your side of the escrow service.
(On a sale of $1M an escrow service might charge approximately $2200 locally), your HOA dues (if there is one) are paid out through the next month at close date, and the basic recording fees of around $100.00.
If you saw my last video, I explained all about property taxes…. ie: you will pay for the property tax from the moment you close. The property tax due at close varies as it based on the time of year you are closing versus when the tax bill has come out.
Net net though is you pay the tax from the moment you own the property and the seller pays the tax up to the day they close.
You typically will have paid your home inspector already in the inspection period.
(Next video I’m reviewing home inspections fyi…)
Now for the Seller..
The seller has their side of the escrow costs and generally the seller is paying here for the title insurance. The seller here is paying for the agent commission and also the country transfer tax.
Additionally the seller here is paying the Natural Hazard disclosure report, the Termite report and a 1 year home warranty policy for the buyer (again, negotiable items, but this is the common way offers are written here).
The seller is also paying for the HOA fees to get the documents from the HOA office to the buyers for their review & approval. These are the CCRs, Rules and Regs, Financials and HOA Meeting Minutes for the buyer to read and accept.
Sellers also are dealing with any capital gains implications from selling, loan payoffs among other personal items.
These are just the basics….
I’m not discussing any fees that are incurred for Land leases that might exist, sewer connections for those odd areas that still need sewer connection… also some clubs have reserve fees or transfer fees that can be a seller’s or a buyer’s cost, depending on the club.
There can be other fees that are specific for any given area…so that is a super good reason to work with an agent that specializes in the area you are buying.
We saw a lot of L.A agents coming out with buyers this summer that did not even know what gate to enter. That’s a little scary.
I use seasoned, local escrow and title insurance professionals who can answer any question. Additionally we have some great local attorneys here that know the lay of the land, along with one that specializes just in foreign seller and buyers issues (mainly Canadian here).
Wherever you are buying, please choose a seasoned professional who knows their stuff!
If I can help further with any questions…just call!
‘Til next time! Ty!

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We have sold homes in Indian Ridge Country Club, full-time for 25+ years. We have the expertise and resources to help you buy or sell your Desert home. As luxury real estate experts for Indian Ridge CC and the entire Palm Desert area, it is our pleasure to take the stress out of the process for you. Because of our knowledge it's not work for us - it's fun! Let's connect today!

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