Quick - Selling Home, Have Closing Cost Question
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Up here it's usually always the seller that pays the closing costs...
It can be negotiated either way in your agreement.
It can be negotiated either way in your agreement.
It is very commonplace, but oftentimes I believe this to be so they don't have to pay money out of their pocket.
You in turn can offer to increase the selling price and in exchange you will pay selling costs.
Sometimes, just having the closing costs essentially amortized into their loan is what they are at least looking for.
If you absolutely don't want to go any lower, add the closing costs to the asking price and tell them you will pay closing costs.
You in turn can offer to increase the selling price and in exchange you will pay selling costs.
Sometimes, just having the closing costs essentially amortized into their loan is what they are at least looking for.
If you absolutely don't want to go any lower, add the closing costs to the asking price and tell them you will pay closing costs.
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It is all negotiated, but yeah, it is common nowadays to have a closing cost paid by the buyer and having a lower selling price and ask the many potential buyers to bid it up.
I was rejected once when I offer the initial selling price on a house that the seller asked for, and refuse to pay a dime more. She sold it to someone else and I end up getting another house instead (the house next door to it).
I was rejected once when I offer the initial selling price on a house that the seller asked for, and refuse to pay a dime more. She sold it to someone else and I end up getting another house instead (the house next door to it).
She's non-contingent, so I don't want her to get away...
She, a single buyer, offered at the low end of where I am happy to sell it, but, it'll be 8k in closing costs!
So, I'm thinking about raising the price 7k more than she offer...
Thoughts?? Help.
Thanks....
She, a single buyer, offered at the low end of where I am happy to sell it, but, it'll be 8k in closing costs!
So, I'm thinking about raising the price 7k more than she offer...
Thoughts?? Help.
Thanks....
It is a buyers market.
Unfortunately, in this market, it's become common for the seller to pick up some or all of the closing costs-however, 7K sounds like a LOT to me!! It all depends on how desperate you are to move it & whether the market is bad in your area.
Originally Posted By: tpitcher
Originally Posted By: PandaBear
It is all negotiated, but yeah, it is common nowadays to have a closing cost paid by the buyer
You mean seller, right??
No, most of the transaction I've seen are paid by the buyers. You can always negotiate but the lender ultimately have to approve the valuation if you want to stuff the price up to compensate for seller paid closing cost. Many people want to pay more but the lender won't approve a higher valuation.
Originally Posted By: PandaBear
It is all negotiated, but yeah, it is common nowadays to have a closing cost paid by the buyer
You mean seller, right??
No, most of the transaction I've seen are paid by the buyers. You can always negotiate but the lender ultimately have to approve the valuation if you want to stuff the price up to compensate for seller paid closing cost. Many people want to pay more but the lender won't approve a higher valuation.
So what, exactly, do "closing costs" consist of? The more I hear the phrase the more I think the lawyers, bankers and realtors got together and decided this was a quick way to add to their bottom line. I like to think I'm wrong on that...
Clark
Clark
Closing costs = one last time for people to grab another piece of the pie!
Don't let anyone tell you different. Cherry for me!
Don't let anyone tell you different. Cherry for me!
Originally Posted By: ClarkB
So what, exactly, do "closing costs" consist of? The more I hear the phrase the more I think the lawyers, bankers and realtors got together and decided this was a quick way to add to their bottom line. I like to think I'm wrong on that...
Clark
Appraisal cost
Attorney fees
Loan (Origination) fee
and so on
So what, exactly, do "closing costs" consist of? The more I hear the phrase the more I think the lawyers, bankers and realtors got together and decided this was a quick way to add to their bottom line. I like to think I'm wrong on that...
Clark
Appraisal cost
Attorney fees
Loan (Origination) fee
and so on
I just sold my house 2 months ago, and the buyer paid all the closing costs. Sometimes as an incentive in certain situations, the sellers will pay some or all of the closing costs. There are some things the seller is responsible for, such as certain back taxes, doc stamp, and other monies up to closing date.
As you can see from the responses, every one has opinions. ;-) It is one of those sneaky last minute back end things where you try to get the other guy to pay.
Thing is, it is the cost to "do" the loan. Or put better, the price to get the buyers bank to give the sucker enough money to buy the house. The buyer is trying to "do" the loan so, it is the buyers responsibility. Otherwise, his loan will not go through.
Sellers may pick it up just to get the deal closed and these days, your agent is right. It is a buyers market. Or you need a different agent. Sit down and talk to your agent about who pays. I would have expected my agent to provide more.
Thing is, it is the cost to "do" the loan. Or put better, the price to get the buyers bank to give the sucker enough money to buy the house. The buyer is trying to "do" the loan so, it is the buyers responsibility. Otherwise, his loan will not go through.
Sellers may pick it up just to get the deal closed and these days, your agent is right. It is a buyers market. Or you need a different agent. Sit down and talk to your agent about who pays. I would have expected my agent to provide more.
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In this market, the seller can be responsible for a hunk. Mostly anything to do with the property, title, title insurance, etc
No way should that include the buyer's stuff like loan fees!
No way should that include the buyer's stuff like loan fees!
Around here, it seems to be done as a percentage of total sale price towards closing costs.
From our appraisal, it seems most sellers pay around 3% of the sale price towards closing costs, but our seller was ready to deliver, so we got him to agree on 6%. Win for us, as we didn't need to bring much of anything to the closing table.
As far as "closing costs" really goes, they can lump ANYTHING in there, really. It's all a numbers game.
From our appraisal, it seems most sellers pay around 3% of the sale price towards closing costs, but our seller was ready to deliver, so we got him to agree on 6%. Win for us, as we didn't need to bring much of anything to the closing table.
As far as "closing costs" really goes, they can lump ANYTHING in there, really. It's all a numbers game.
Mostly the loan initiation fee, then title insurance, then other registration fee. The smaller your loan and less complicated it is, the smaller your closing cost.
Where's buster when we need him?
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