Inga Modu-Rella
Keller Williams Realty Group

Please know that we are listening to you...You asked...So here are some answers to some frequently asked questions by buyers and sellers...


Q: What is a commission and who pays it?

Commissions are initially set by the seller with the advice of the listing broker on how much to offer as compensation to the buyer’s broker who successfully closes the transaction with a ready, willing, and able buyer. On average, brokers charge a 6% commission upon the successful closing of the transaction. It is shared between the seller broker and the buyer broker 50/50.

Q: How much are closing costs for sellers?

Here are the closing costs that sellers are typically responsible for:

  • A closing fee is paid to the title company or attorney’s office where everyone meets to close on the home.
  • Property Transfer Taxes on the home sale.
  • A fee for an attorney, if the home seller has one.
  • A fee for transferring the title to the new owner.
  • Paying off your mortgage (if applicable)

Sellers typically pay real estate agents’ commissions 5% to 6% of the home’s sales price.


Q: How much are closing costs for buyers? 
Most of the closing cost fees that buyers have to pay are associated with the mortgage. 
Here are some of the fees a home buyer has to pay: 
A loan origination fee, which lenders charge for processing the paperwork for your loan. 
A fee for running your credit report. 
A fee for the underwriter, who assesses your creditworthiness. 
A fee for the appraisal of the home you hope to own to make sure its value matches the size of the loan you want. 
A fee for the home inspection, which checks the home for potential problems from cracks in the foundation to a leaky roof. 
A fee for a title search to unearth any liens on the property that could interfere with your ownership of it. 
A survey fee if it’s a single-family home or townhome (but not condos) 
Taxes on the money you’ve borrowed for your home loan 
In some sales such as shortsale or foreclosure property transfer taxes 
 If you’re paying cash for a property, there are still a few closing costs, but they are significantly less. Just think that you don't have to pay mortgage associated fees. 


Q: Is it worth it to pay off the mortgage early?
Paying off your mortgage early can save you a lot of money in the long run. The extra cash toward monthly mortgage payments can allow you to own your home sooner. If you want to learn more ways to save, DM or text me at (914) 222 0395. Having an emergency fund before you put your money toward your loan is a good idea. To calculate how much you can save over the lifetime of your mortgage, check the mortgage calculator.
Q: What is Home Equity?

Home equity is the difference between how much your home is worth and how much you owe on your mortgage. Schedule a 20-minute Zoom meeting to understand how much equity you have in your home and what you can do with it.


Q: How much is the seller's commission?

Sellers are often confused by the often-quoted ‘6% commission fee. The commission is split between the buyer’s and the seller’s brokerages (usually 50/50). After each brokerage takes its cut, the remaining amount goes to the agents. Real estate agents don’t receive a salary, instead, the fee received from their brokerage pays for the time agent spent marketing their home including fees to hire a professional photographer, to list on Multiple Listing Service (MLS), and any applicable fees to advertise on various websites. If your house doesn’t sell, the agent doesn’t get reimbursed for the time spent or costs related to marketing your home.


Q: What is the difference between short sale & foreclosure?

Watch this short video, and if you still have questions send me an email to make time to speak: email Inga


Q: Do I need to do an inspection on the property I made an offer?

Most real estate buyers have little to no prior knowledge of, or expertise in, real estate and construction. Professional inspectors have the knowledge, skills, and experience to detect costly problems, so it is very important to include an inspection in the home-buying process (particularly when buying a home built on improved land).

Most of the value of residential land comes from the house. A house with one or more severe structural, electrical, heating, or plumbing problems can cost tens of thousands of dollars or even more. Consequently, spending a few hundred dollars on an inspection is worth the investment.

Check here:


Q: What is Private Mortgage Insurance (PMI)?

PMI is a private mortgage insurance policy that protects the lender from the risk of default and foreclosure, allowing buyers who are unable to make a significant down payment to obtain mortgage financing at affordable rates. It's a monthly fee, rolled into your mortgage payment that is required for all conforming, conventional loans that have down payments of less than 20%. Once you've built equity of 20% in your home, you can cancel your PMI and remove that expense from your mortgage payment. As the borrower, you pay the monthly premiums for the insurance policy, and the lender is the sole beneficiary.

Q: What is the cost of Private Mortgage Insurance (PMI)?

The cost of PMI varies based on your loan-to-value ratio – the amount you owe on your mortgage compared to its value – and credit score, but you can expect to pay between $30 and $70 per month for every $100,000 borrowed.

Q: How can I avoid paying Private Mortgage Insurance (PMI)?

If you pay single-premium PMI upfront in a single lump sum, instead of monthly PMI payments. The premium can be paid in full at closing or financed into the loan. Or you can avoid paying PMI by making a down payment that is at least 20% of the purchase price of your home. 

Q: What is lender-paid PMI (LPMI)?

With lender-paid PMI (LPMI) the cost of the PMI is included in the mortgage interest rate for the life of the loan. This can make a lower monthly mortgage payment, but you will end up paying more in interest over the life of the loan. And, unlike monthly PMI, you don't get to cancel.

Q: What is title insurance and why do I need it?

Title insurance protects both real estate owners and lenders against loss or damage occurring from liens, encumbrances, or defects in the title or actual ownership of a property.  Unlike traditional insurance, which protects against future events, title insurance protects against claims for past occurrences. Such claims include property ownership by another person, fraud or forgery of the title documents, unidentified easements, outstanding lawsuits, and liens against the property. Having no title insurance exposes transacting parties to significant risk in the event a title defect is present. 

Q: How do I buy title insurance?

It can be purchased directly from the title insurance company or from the title agent and paid at closing.

Q: Who pays for title insurance?

Usually, the buyer and the lender, depending on the agreement. The lender will require the buyer to purchase it. In some cases, the seller may pay for title insurance for the buyer of their real estate property. 


We would like to hear from you! Feel free t email your questions!