Did you know that there are things that may come with the house you are buying that could add to the bottom line at the closing table? Depending on what type of heating fuel you use there could be a charge for the remaining fuel being left behind by the seller. Many people who move into more rural areas from cities where they are used
to natural gas being piped in as needed may not be prepared for what can be a $1000 + charge for heating fuels at the closing table. Understand that you would have to pay for fuel sometime but if you are unprepared it can come as a shock. Somewhere along the line it was most likely mentioned that the fuel cost would be paid at closing but the full understanding of what that means may not have hit home. The last thing you need is for $1000 to keep you from being able to close on your house. Make sure you understand the closing costs as explained to you and ask questions if you don't understand.
As a home buyers it is important to understand what is involved in buying the house you are interested in. Having a Buyer's Representative who will make sure you understand the home buying process in the location you are planning to live is important. A Buyer's Representative will be there with you through search, offer, negotiations, inspections, and closing. If you are working with a Listing Agent you will be missing out on personal representation and you may not fully understand what is what.
If you are looking to buy in Orange, Ulster, or Sullivan Counties of the Greater Hudson Valley and Catskill Regions of New York I would love to be your Buyer's Agent. If you live anywhere else in the world I can find you a great agent to help you where you want to live.
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Paddy Pizappi, Associate Broker for Buyer Representation
RJ Smith Realty - A Real Estate Solutions Company
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from Pine Bush, NY at the corner of Orange, Ulster, and Sullivan Counties
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Paddy, I am in an area where natural gas is the fuel of choice, but buyers in rural areas need to be aware that they could be charged at closing for fuel, I am not sure I agree with that....what about firewood...do they charge for that too???
Yes, I have seen that happen as well. You need to be a proactive agent in those cases and make sure that you are informing your buyers, or if you are the sellers agent making sure you get their money back.
Love the picture you used!
They could Caren, as it is not part of the real estate but it is not usually an issue. Most sellers have the oil tank or propane take filled before closing or they have a reading taken then charge the buyers for the amount of fuel in the tank based on the fuel cost that day. Firewood??? I think most would either take it or leave it without charge
Thanks Bridget. I have an account with iclipart.com They have some great clip art available there.
Hi Paddy,
LP is a fuel used in some of my service area and the seller may or may not want to give the fuel for free. I always prep my buyer for all charges that may be incurred for the transfer of property more than once during the search process and in writing with an estimation of closing costs for the property selected for an offer. As we all know everything is negotiable in a transaction.
Absolutely Ross. Most agents are careful to inform but sometimes the buyer does not hear or understand. This came a situation from a closing of another agent who's buyer did not fully understand that they would be paying for fuel and almost did not close because of it.
Hi Paddy, This is something I had never thought of and it certainly would be a shock. Thank you for the information, many people are going to appreciate this post.
Carole there are so many little details that go into a closing that buyer's may hear something and not comprehend it. They are told there will be a charge for fuel but many have never bought oil or propane and are surprised by the amount that can be high.