{"id":1607,"date":"2021-04-15T09:40:18","date_gmt":"2021-04-15T09:40:18","guid":{"rendered":"https:\/\/micara-int.tag.newdevbox.com\/?p=1607"},"modified":"2021-04-15T09:43:15","modified_gmt":"2021-04-15T09:43:15","slug":"understanding-real-estate-transaction-costs","status":"publish","type":"post","link":"https:\/\/micaraland.com\/real-estate-ofws\/news\/understanding-real-estate-transaction-costs\/","title":{"rendered":"What You Need to Know About Real Estate Transaction Costs"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1607\" class=\"elementor elementor-1607\" data-elementor-settings=\"[]\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0130a2b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0130a2b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-fb8f380\" data-id=\"fb8f380\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e1683fc elementor-widget elementor-widget-heading\" data-id=\"e1683fc\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">The Down Low on Real Estate Transaction Costs<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-729d0af elementor-widget elementor-widget-text-editor\" data-id=\"729d0af\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Imagine how simple it is to shop for groceries. You see an item on the shelf \u2013 its price tag visible for everyone to see \u2013 so, you know how much money to spend for other needs. You take and place the item in your pushcart. Later, once you\u2019ve completed your grocery list, you have these items punched. It is only then that you find out there are other charges, so that you can fully \u201cown\u201d your groceries. Sounds problematic, right?<\/p><p>When it comes to <a href=\"https:\/\/micaraland.com\/real-estate-ofws\/house-and-lot-cavite\/\">buying property<\/a>, it is important to know that there are transaction costs for buying a house. Apart from the actual base price of the property, there are closing costs necessary to complete the transaction, which then legitimizes the transfer of rights to the property. From both ends, the buyer and seller will have to pay particular fees, such as taxes, to ensure that the purchase was done in good faith and executed in a legal manner.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d8fd4f8 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d8fd4f8\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-109324f\" data-id=\"109324f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6d51f79 elementor-widget elementor-widget-heading\" data-id=\"6d51f79\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Fees Do I Need to Pay When Buying a House<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-343e73b elementor-widget elementor-widget-text-editor\" data-id=\"343e73b\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Since the completion of a property transaction is made official through documented paperwork, it is the transferal of ownership that formalizes the deal. This means that outside of the property\u2019s actual price tag, there are costs that one has to shoulder so that the house or property is legally theirs. Listed below are the typical transaction costs in real estate:<\/p><ul><li><strong>Transfer Tax<\/strong> \u2013 This refers to the fee that the buyer has to pay for the complete transfer of the property\u2019s ownership. Usually, the transfer tax is paid to the city where the property is located. Rates vary from city to city, but they typically range around 0.50 to 0.75 percent.<\/li><li><strong>Title Registration Fee<\/strong> \u2013 This refers to the fee that the buyer has to pay for the issuance of a new title with his or her name certifying the change in ownership. This fee is rated around a percent of the property price.<\/li><li><strong>Notary Fee<\/strong> \u2013 Payment of these is negotiable and are generally around 1 to 2 percent of the property value.<\/li><li><strong>Documentary Stamp Tax<\/strong> \u2013 Paid by the seller to the Bureau of Internal Revenue (BIR), this refers to the fee for the agency evidencing the transaction as an agreement between all parties involved. The cost is at 1.5 percent, or higher, levied on the property\u2019s selling price or fair market value.<\/li><li><strong>Capital Gains Tax<\/strong> \u2013 Paid by the seller to the BIR as well, this refers to another form of transaction tax that considers real estate properties as capital assets. This is levied at 6 percent of the property\u2019s gross selling price or fair market value, whichever is higher.<\/li><li><strong>Real Estate Agent\u2019s Fee<\/strong> \u2013 Paid by the seller to the Real Estate Agent or Broker, this serves as commission based on an agreed percentage of the gross selling price of the property. Often, these fees average at around 3 to 5 percent.<\/li><\/ul>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e0caeb3 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e0caeb3\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9676f75\" data-id=\"9676f75\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9f6be7a elementor-widget elementor-widget-heading\" data-id=\"9f6be7a\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How Much is the Transfer Fee When Buying a House <\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-25eae4c elementor-widget elementor-widget-text-editor\" data-id=\"25eae4c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Outside the property\u2019s selling price, if we were to total all the fees necessary to complete a sale, we\u2019ll probably yield a total of 4.5 to 16.25 percent. The costs paid by the buyer should come to around 1.5 to 3.75 percent of the property\u2019s price tag. The costs paid by the seller, meanwhile, should range between averages of 3 and 12.5 percent \u2013 depending on agreements made with the real estate agent. Knowing these things should prove helpful, especially if one were to engage in property transactions. Apart from knowing these fees, it will also be useful to familiarize oneself with the procedures in buying and selling property.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The Down Low on Real Estate Transaction Costs Imagine how simple it is to shop for groceries. You see an item on the shelf \u2013 its price tag visible for everyone to see \u2013 so, you know how much money to spend for other needs. You take and place the item in your pushcart. Later, &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/micaraland.com\/real-estate-ofws\/news\/understanding-real-estate-transaction-costs\/\"> <span class=\"screen-reader-text\">What You Need to Know About Real Estate Transaction Costs<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":1499,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-1607","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What You Need to Know About Real Estate Transaction Costs | Micara Estates-Tanza<\/title>\n<meta name=\"description\" content=\"Apart from the actual purchasing price of a property, such as a condo or a house and lot, there are other closing costs to take into account.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/micaraland.com\/real-estate-ofws\/news\/understanding-real-estate-transaction-costs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What You Need to Know About Real Estate Transaction Costs | Micara Estates-Tanza\" \/>\n<meta property=\"og:description\" content=\"Apart from the actual purchasing price of a property, such as a condo or a house and lot, there are other closing costs to take into account.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/micaraland.com\/real-estate-ofws\/news\/understanding-real-estate-transaction-costs\/\" \/>\n<meta property=\"og:site_name\" content=\"Micara Estates - 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