real estate, real estate transaction

A tutorial on some of the potential closing costs in a real estate transaction!

Hallmark Abstract Service LLC

If you are buying a residential or commercial property then you are most likely aware that the cost of the property itself aren’t the only costs involved in your transaction!

Title insurance, one critical piece of the transaction that is often overlooked by buyers, represents one part of the expense in closing on a property.

But there are others as well that are described in an excellent overview provided in this article from Closing.com. To read about other topics offered at Closing.com click on the link below.

“Closing Costs Checklist”

The cost of buying a property goes beyond simply paying the price negotiated between the buyer and seller.

You’ll actually pay less, if you can pay cash. If you are taking a mortgage, the closing costs involved to complete the transaction can range from 2% to 7% of the purchase price.

Fees required vary by state. Here are some of the common fees included in a typical settlement, which will comprise your closing costs:

FEES RELATED TO A MORTGAGE LOAN (IF YOU ARE BORROWING TO BUY):

  • Loan discount (“points”) – a one-time fee charged by the lender to lower your monthly interest rate
  • Appraisal fee* (the lender usually orders an appraisal to determine the value of the property)
  • Credit Report fee* (for the lender to research your credit rating)
  • Lender’s inspection fee* (for walking through the property)
  • Mortgage insurance application fee* (for additional insurance to protect the lender if you default)
  • Assumption fee* (fee to process new documents if a buyer is taking over a seller’s mortgage)
  • Underwriting fee (the underwriter or insurer reviews your loan package and gives final approval to close to the lender)

* This fee is usually paid before you meet with the settlement or escrow agent to close the transaction.

FEES A LENDER REQUIRES YOU TO PAY IN ADVANCE:

  • Interest on your mortgage loan from the day of closing to the end of the month.
  • Hazard insurance premium (protection from such hazards, as fire, wind or vandalism)

AMOUNTS THAT MAY BE DEPOSITED ON RESERVE WITH THE LENDER:

  • Hazard insurance premium for the year (also called “Homeowner’s Insurance“)
  • Mortgage insurance – the number of months varies
  • City property taxes – usually two months in advance
  • County property taxes – this amount can vary depending on when you close. (The impound accountmust be synchronized with the due date of property taxes. For example, if you close your loan one or two months after property taxes are due, you will generally only need to reserve one or two months worth of taxes. However, if you close near the end of the property tax cycle, you could be required to bring six to nine months worth of tax payments to the closing.)
  • Annual assessments (cover any updated value placed on the property for tax purposes)

FEES RELATED TO THE PROPERTY’S TITLE:

  • Closing fee for the settlement agent or attorney (depending on who handles the closing)
  • Document preparation (be sure to ask for details if you are charged for this; also ask about any “courier” fee if imposed)
  • Notary fees (for witnessing signatures on legal documents)
  • Attorney fees (if a lawyer is involved in the title process)
  • Title Insurance – lender’s coverage (protects the bank), owner’s coverage (guarantees that the buyer has the right to the property)

TRANSFER AND GOVERNMENT RECORDING FEES:

  • Fee to record (place on public file) the deed, mortgage and any releases
  • County and possible city transfer taxes due on the recordation of the deed

ADDITIONAL SETTLEMENT FEES

  • Pest inspection fee
  • Other miscellaneous fees may include home inspections, land surveys, flood certification, earthquake insurance, radon tests, or lead-paint inspections depending on the location and history of the property.

 Closing.com

At Hallmark Abstract Service our value proposition is to deliver on what it is that our clients expect from us each and every time that they trust us with one of their valuable transactions.

Service, attention to detail, fast turnaround times, willingness to go the extra mile and reasonable pricing on non-policy related fees are just some of the things we are focused on and that our clients have come to expect from us!

And that’s why we continue to earn their business, time and time again!

Call or email us today to set-up an appointment where we will come to your office, learn about the nuances of your practice and explain to you the way that we approach ours!

Mike Haltman, Owner

516.741.4723 (O)

Hallmark Abstract Service LLC

mhaltman@hallmarkabstractllc.com

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customer satisfaction, title isuance

What is a value proposition?

Hallmark Abstract Service New York title insurance

value proposition as defined by the management of Hallmark Abstract Service is NOT what we promise to deliver to our clients!

As we have all experienced promises made are certainly not always promises fulfilled!

Who among us hasn’t been given a window of 8:00AM to 12:00PM by the cable or phone company only to still be waiting at 2:00PM for someone to arrive?

When you are a company in an industry with limited competition for your services, and the people who are providing the service are potentially uninterested employees, it allows for the leeway to disappoint.

In the title business where competition abounds, disappointment or under-performance for our clients is NOT an option.

At Hallmark Abstract Service our value proposition is to deliver on what our clients expect from us each and every time that they trust us with one of their valuable transactions.

Service, attention to detail, fast turnaround times, willingness to go the extra mile and reasonable pricing on non-policy related fees are just some of the things we are focused on and that our clients have come to expect from us!

And that’s why we continue to earn their business, time and time again!

Call or email us today to set-up an appointment where we will come to your office, learn about the nuances of your practice and explain to you the way that we approach ours!

Mike Haltman, Owner

516.741.4723 (O)

http://www.hallmarkabstractllc.com

mhaltman@hallmarkabstractllc.com

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Business management

How does your business handle a dissatisfied customer?

Hallmark Abstract Service title insurance New York

Dissatisfied customer

One of the great benefits for a business that never makes mistakes is that there will generally be few complaints from clients! But just how realistic is that?

In business as in sports there are times that we are living in the sweet-spot of performance and execution. Most of us have had  those days when no matter what an opponent threw it was knocked out of the park. Or a great serve from an opponent returned for a winner, a “hail Mary” pass thrown for a touchdown with no time on the clock or a winning shot from half-court at the buzzer with a hand in your face.

Similarly in business there are times when a company is running on all cylinders with sales going gangbusters and a client base that couldn’t be happier or more satisfied with the firm’s products or services.

Unfortunately the reality is that for a business there will be times, hopefully few and far between, when for one reason or another there will be a glitch and a client will be unhappy with some aspect of a firm’s delivery or overall performance.

When this occurs it presents a company with an opportunity to make lemonade out of lemons or, at the very least, to not compound a bad situation of customer dissatisfaction by making it worse through actions, attitudes or method of resolution to the point that you lose that client!

Here are some of the ways that a business should respond to customer unhappiness!

Respond instantly – when a customer complains, respond instantly. The more they wait, the more they get frustrated and hence, would be more inclined to be unreasonable. Do not wait for their irritation to escalate to anger. Respond to their complaint message immediately.

Believe that customer’s complaint is genuine – one of the worst steps of counteraction a company can give is implying that the customer is dishonest or unrealistic. Tell the client that you believe their complaint is genuine and you are trying your best to see what can be done to help.

Apologize for the pain they feel not for the mistake – the mistake is not always yours. However, the complaining individual is genuinely aggrieved. Apologize to the customer for the pain they have experienced. Saying sorry for their (customer’s) discomfort is not the same as saying sorry for a mistake that your company has done. However, when you say sorry genuinely, the customer is more often than not already pacified and ready to listen to you with an open mind.

Do your best to meet their expectations – one of the most important rules for handling customer complaints is showing that you are doing your best to help. You will find that the majority of people are reasonable in their expectations. Just knowing that you are making all the effort to help them will often open the door to negotiations on how to resolve the problem towards mutual benefit.

If it is your mistake, overcompensate – there will be instances when the customer is right. The service/ product/ experience/ was bad. If you are guilty of any such thing, the rules for handling customer complaints say that you acknowledge, apologize and immediately overcompensate the aggrieved client. In this way, you are eliminating a disgruntled customer and appointing a free goodwill ambassador for your brand; for this customer will not stop praising you after that. (Source)

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