should i pay the closing cost or should i have seller pay it i dont have the money but could try to get it is there any downfalls if seller pays it
2007-01-02 04:10:22 · 9 answers · asked by matt12882003 3 in Business & Finance ➔ Renting & Real Estate
No harm in trying to get the seller to pay all closing costs. When you put in your offer, tell your agent to ask the seller to pay all closings. Than if they reject your offer try again with the seller paying some of your closing. Depends on where you live and the market. IF houses in your area are selling slow, chances are your seller will just except the offer. (if your offer is reasonable, $10,000 within asking price) Since closing costs are broken down in your offer talk to your Realtor about which ones to include, but remember, your Realtor just wants a sale, so have her/him explain what each closing cost refers to and in the end, decide for yourself! Your the buyer, and have all the leverage!
2007-01-02 04:18:45 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Find out what the general procedure is for your state. Once you know who generally pays for what (because every state is different), then that can set the foundation for your negotiations. Just because it is "general procedure" doesn't mean that it can change for your purchase. There are no downfalls if the seller pays for it, as it will come out of the seller's profit on the sale.
For my closing costs, I told my realtor (buyers agent) that I didn't want to come out of pocket for closing costs. Therefore we raised the purchase price to an amount that we thought was a good estimate of those costs. This meant that I was financing the closing costs along with the purchase. However, when you go to the lender to get the loan, don't tell them that the closing costs were wrapped into the financing. They are generally not in the business of financing your closing costs. Happens all the time.
2007-01-02 12:17:10 · answer #2 · answered by chris_in_columbia 2 · 0⤊ 0⤋
It's a great idea to have seller pay closing costs! With interest rates being so low, the little amount of interest you will pay on them will outweigh the benefits.
If you are already under contract, it is not too late. What you will have to do is raise the sales price to cover all estimated expenses. This is where you'd better hope you have a good lender. ;) YOU MUST DO THIS PRIOR TO APPRAISAL. Most appraisers only look to see if the house is valued at the sales price or better. If you need closing costs included, this will make a difference to your appraisal.
This is based on my experiences as a Realtor, in the state of Missouri, your state may be different.
2007-01-02 12:24:00 · answer #3 · answered by spiralhedgewitch 2 · 0⤊ 0⤋
The seller usually only pays if the property has been on the market for sometime. Ask you agent point blank how long has the property been on the market? If more than 6 mos. then there is a better likelihood that they will accept closing costs under their venue as they may be making a new mtg. payment and anxious to dump the existing property.
2007-01-02 12:21:36 · answer #4 · answered by bottleblondemama 7 · 0⤊ 0⤋
In the current market it is common to at least ask the seller to cover the non-recurring closing costs. It is a negotiable tool you should always use. You should also consider using an agent who also does the loan. This will save you even more $$$.
Here is some info that should help.
2007-01-02 12:51:27 · answer #5 · answered by loanman46 2 · 0⤊ 0⤋
You should try to have them pay it. It would save you the money that I'm sure you could use else where in your move. the worst thing they can say is no. Alot of sellers will still except the offer because they want to get rid of the house. I would give it a try if I were you. Good luck in your move
2007-01-02 12:18:22 · answer #6 · answered by Amber S 3 · 0⤊ 0⤋
You should talk to your agent. If you don't have the money, he/she can help you put the offer together and discuss the pros and cons.
If you had the money I would say you should go ahead and pay your own closing.
Perhaps an alternative would be for you to pay some of it and ask the seller to pay some.
2007-01-02 12:20:17 · answer #7 · answered by txrealestateagent 3 · 0⤊ 0⤋
This is an issue that should be addressed in your offer. If you haven't put in an offer then make it a contingency. If you have an offer in already then it is probably too late. Ask your agent. Not the listing agent YOUR agent
2007-01-02 12:14:28 · answer #8 · answered by Anonymous · 0⤊ 0⤋
it's all negotiable.
usually you split the cost.
2007-01-02 13:14:17 · answer #9 · answered by Anonymous · 1⤊ 0⤋