Does the buyer pay all closing costs when buying a home? Is the buyer also supposed to pay a seller money down to hold the house for them? We've been working with the same people for almost 4 months now (we're the sellers and they're the buyers) and they haven't paid us anything. We've lost out on other people willing to buy now, but my dad (who owns the house) does not want to "do these people wrong" by selling it to someone else. We've also had to do all kinds of things to the house like install new storm windows and tons more that we never planned on doing. We're out a lot of money. When I say something to them, they get mad and threaten to back out which makes me mad b/c we've been so nice to them. So were they supposed to pay anything down to us and are they paying all closing costs? I'm afraid they'll try to stick it on us. What should I know about selling our house---are we getting ripped off here?
2007-11-11 09:38:36 · 7 answers · asked by Cindy R 1 in Business & Finance ➔ Renting & Real Estate
The buyer and seller work out who pays the closing costs. As a seller, you can contribute towards the closing costs if you want, but you don't have to. Do these people have a loan? Sounds to me like they are not approved to buy your home. They should have given you earnest money to hold the home for them. Typically, it's $500 and you agree to hold the house for them for a period of time. 4 months is rediculous! Me and my family have been in real estate for over 12 years and I can almost guarantee that these people will not close on this home. THEY HAVE NO LOAN! If they had an approved loan, it wouldn't take this long. A typical real estate transaction is 30 days or so.
REMEMBER...This is a negotiation. There is no way they can "stick it on you" as you said. They need to make an offer on your home. This offer could contain closing costs that they want you to pay. After their offer, you counter-offer or accept the offer and you have a deal. Right now, you don't have a deal. They should be paying for all the inspections and appraisals. Don't make another repair on that home until you see an inspection report from a certified inspector. This is why people need realtors! It sounds to me like your dad doesn't like using realtors so this is what you get. What a mess...these are the types of buyers that you will get when you do a for sale by owner. Get a realtor and list the house so it can be marketed and you can get a good QUALIFIED buyer. Then drop these people because they aren't really buyers anyways. This is your home! Don't let them threaten to back out. You need to threaten them that you'll sell to someone else if they don't get you what you need.
2007-11-11 10:00:07 · answer #1 · answered by Jack of All Trades 2 · 0⤊ 0⤋
1. When selling or buying house, almost everything is negotiable.
2. A buyer or seller can pay the closing costs. As this is a buyer's market currently, it isn't unusual to see the seller pay for some portion of the closing costs.
3. If the buyer wants the house taken off the market, then they need to purchase the home. GENERALLY, and this varies by state, but GENERALLY, earnest money deposit is made with the offer to purchase. This money is held in escrow by the seller's agent or with an attorney. Then while inspections, title searches, mortgage applications are completed, the property is still for sale, but everybody is put on notice that the sale is moving forward. During this time, the seller is welcome to entertain others offers. In fact, just a year or so ago, it was not unusual to have multiple offers with multiple deposits made for a particular property. The earnest amount may be as little as $500. It is a way for the buyer to let the seller know they are serious about buying the property.
4. If they haven't paid you anything with a purchase offer, why are you working with them? From your post, it doesn't sound like they have even made an offer.
5. It doesn' matter how long you've been working with them, if they haven't closed on the house in four months and haven't made an earnest deposit, then why are you continuing to waste time with them?
6. Buying and selling a house, while fraught with emotion, is a business transaction. There is no nice. It is a very simple transaction. They pay you money for an article with some set amount of value. It is no different than going to Wal-mart and buying a shirt. Wal-mart decided the t-shirt is worth $5. If you agree, you pay Wal-mart $5. If you don't agree, then you go to Target or K-Mart and see if you agree with their t-shirt prices.
Buying and selling a house is no different. Either on your own or with a real estate agent, you come up with a selling price using comps (comparables, other houses in the neighborhood which have similar features, like three bedrooms, two bathroom and a two car garage). Once the selling price is agreed upon, the house is placed on the market. Most often this means a sign is placed in the yard, the listing is placed in the MLS (multiple listing service, kind of a database for realtors so they know what is available) and advertising may be placed on craigslist, the local newpapers, etc.. The property has to be shown, generally by the buyer's agent, but sometimes your agent will also bring a buyer to the table.
7. From what you are posting, it sounds like you are doing this all by yourself. That isn't something I'd recommend for a first-time seller for exactly this reason.
I would stop dealing with these people until a legitimate purchase offer, with all contingencies clearly spelled out, and a earnest money deposit is made. Until then, continue to show the property to anyone who is qualified and shows an interest.
7. The fact that two other parties showed interest and you father turned them away because he was being nice is the reason professionals do this for a living.
As for getting ripped off, I doubt it. They don't have title to the property and an improvements you've made to the property are improvements to YOUR property. It's debatable and up to market forces if you've over improved the property for what the market will pay with new windows.
8. I would get a real estate agent involved. Call some folks who signs you see in you neighborhood, Interview them. After all they are applying for the job of selling your home. Ask then if they would negotiate their commission. Again, ALMOST EVERYTHING is negotiable in a real estate transaction. See if they can't get your house sold.
2007-11-11 10:13:00 · answer #2 · answered by ? 2 · 0⤊ 0⤋
closing cost are negotiable. You can have the buyer pay them or the seller or each pay their own share.
Regarding holding money. When a buyer want to buy a property, the seller can (and should) ask for a deposit. In the purchase contract you can state that if the buyer backs out of the deal x many days after acceptance, then the deposit is kept by the seller. You can also state that if the buyer does not purchase the property after x many days a daily penalty will occur or the contract will be void (or both).
Now if the buyer used a "purchase option contract", then by law, the contract is only enforceable if a non-refundable purchase option money was given.
Go over the contract your dad has and see what's the hold up on these people tying up your dad's property. Maybe they are flippers and are trying to find a retail buyer for the property.
Regards
2007-11-11 09:48:00 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Our seller paid the closing costs. Sellers aren't obligated to, but many do. If you didn't offer to pay closing costs, you don't have to.
You have every right to ask for good faith money, which is money the buyer pays to the seller, promising to buy the house provided the seller doesn't change the original agreement. This money is usually held in escrow until closing. The buyer would get this money back at closing. If the buyer backs out of the deal for no good reason, the seller keeps the money and can sell to someone else.
Our seller asked for $500 in good faith money.
2007-11-11 09:46:12 · answer #4 · answered by Jill C 5 · 0⤊ 0⤋
In real estate, everything is negotiable. A savvy buyer will have you paying everything is they can, and that is why selling your home without a real estate agent is not a good idea and can cost you far more money than a commission.
I would consult a real estate agent to help you get through this before you agree to give up even more. If they haven't put any money down, then you probably don't even have a contract. Sounds like they are taking you for a ride.
2007-11-12 00:56:28 · answer #5 · answered by Anthony 3 · 0⤊ 0⤋
do no longer supply you attempt to put in over the years in case you may. and ask the provider provider for incentives alongside with assisting with down payemnt and shutting. don't get discurage with regard to the industry right this moment. because of the fact now's the time to purchase. no person is familiar with while the industry will backside, and by utilising that element one you comprehend it it is to previous due. See if the provider provider will drop the fee. i'm in an analogous situation and the builder desperate to furnish 3% in the direction of closong that (10,000). So bypass good fortune.
2016-10-02 03:26:59 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Yes, you're getting ripped off, and badly. What sort of contract do you have with these people ? Your purchase contract or offer to purchase should have clearly detailed what is expected of them, as well as what is expected of you.
I'm guessing that you do not have professional representation on either side of this deal, and these folks played you like a Stradivarius violin.
2007-11-11 09:45:30 · answer #7 · answered by acermill 7 · 1⤊ 0⤋