How high are realtors' and buyer's fees in the US?
What about other property purchase costs?
How difficult is the property purchase process in the US?
There are minor restrictions on foreign ownership of real estate in America but they are insignificant for buy-to-lease investment purposes.
In Nevada, foreigners are allowed to buy land but they can buy condominiums, townhomes, single family and commercial properties.
The procedure below is followed in Nevada:
1. Make an offer through your buyer’s agent, who will convey it either to the seller's agent in writing directly. The seller may counter your offer, beginning a negotiation process that, hopefully, will lead to an agreement on price, terms, and closing date.
2. The escrow agent begins preparation of the escrow work for your purchase sale and withholding of buyer’s down payment deposit.
He or she obtains and reviews the following documents: the deed, survey, title insurance policy, promissory notes or mortgages on the property, certificates of occupancy, tax bills, fuel and utility bills, leases, permits, etc.
Title Search and Insurance:
Title insurance fees vary depending on the location of the property. It is common practice to obtain title insurance from one of the competing title insurance companies. The title insurance can only be acquired at closing.
A title report is an essential prerequisite to secure title insurance. Title companies do not provide title insurance without a title report tracing the deed history and clearly articulating the liens, covenants and other limitations on title.
Real Estate Agent's Fee:
Real estate agent or broker's fee is typically negotiable. Although the standard rate is 2-5% some agents are willing to reduce their rate just to close a deal. Some agents impose a higher fee but include other functions such as title search. It is usually paid by the seller or buyer during offer and negotiation process.
Recording Fees:
Recording fees are charged by the government for entering an official record of the change of ownership of the property. It can be paid by buyer but is usually paid by the buyer. Recording fees are usually fixed amounts and are minimal.
Round Trip Total Transaction Cost:
Buying real estate in Nevada, understanding the mandatory taxes and costs involved is crucial for initial Buyer(s) or Investors.
These costs typically include property transfer taxes, stamp duties, notary fees, escrow fees and real estate agent commissions, all of which can add up to nearly 3-9 % of the property price.
Note: The cost estimates provided are based on average figures from our research and updated experience on each transaction we handled.
Since every property transaction is unique, we strongly recommend consulting a professional for a more personalized advice on your investment obligations and other related matters.