We are selling our house and buying a new one. I personally having never this before, have a silly question. I know we pay closing cost on the house we a buying, but are there any closing cost that we have to pay on the house we are selling? Thanks for any help!!
2007-12-18 04:31:06 · 11 answers · asked by dreamwalkin4us5 1 in Business & Finance ➔ Renting & Real Estate
The question of who pays the closing costs is negotiable.
Why are you paying the closing costs on the house that you are buying? Is it because someone told you that it was customary to do so?
Just because something is customary does not mean that you cannot negotiate something different.
As a practical matter the party who has the least power in the transaction is the party who pays the closing costs.
Currently it is a buyer's market in most parts of the United States. That means that the buyer has the power in the transaction. As a buyer, I would tell the seller to pay the closing costs or I will find another property.
Of course you also have a property to sell. Since that puts you in a weak position as a seller, I would expect to pay the buyer's closing costs on the house that you are selling.
If you are buying a new house, builders often say that you must pay the closing costs. In today's market, builders are desperate to sell their inventory. I would make the builder pay the closing costs no matter what the builder says they do. If the builder does not go along, I recommend that you find another house.
There are a lot of houses out there right now.
I also recommend that you get your own appraisal independent of the lender's or the seller's appraisal. If your appraisal comes back at a fair market value that is less than the amount of your offer I recommend that you give the seller two choices:
1. Agreet to reduce the contract price to the fair market value as determined by your appraiser or...
2. Agree to cancel the contract and direct the escrow company ot return your deposit to you.
Then go find another house.
2007-12-18 04:57:00 · answer #1 · answered by Anonymous · 0⤊ 0⤋
New Jersey has a state realty transfer tax paid by the seller upon the sale of their home. Does your state? If you have a mortgage on your home you should verify that there are no early pre-payment penalties.
If you are working with a realtor for the sale of your home or the purchase of the new home, you can ask that person to run you an estimated closing cost report for either side of each transaction. While it may not give you exact dollars your spending you can at least see what potentially is coming your way. Now, as Mike stated in a buyer's market you may be able to deflect some of the expenses on your next buy, but don't be surprised if on the sale of your home you are not asked to contribute more than normal. Thanks and good luck!!
2007-12-18 05:43:54 · answer #2 · answered by smitty 2 · 0⤊ 0⤋
Yes. When selling your house you typically have to pay for an owner's policy for title insurance, transfer taxes and stamps, commission and fees if you are using a Realtor, a title company closing fee, and of course your mortgage payoff. Most of these costs on the selling side are not negotiable, however when you are buying a home it is quite common to ask the seller to pay your buyer closing costs.
2007-12-18 06:39:21 · answer #3 · answered by Slassy Girl 6 · 0⤊ 0⤋
Technically, you don't have to pay either one. Some instances the seller will pay closing costs and some instances the buyer will have to pay the closing costs. It just depends on how you negotiate. If you don't want to put up any of the closing costs on the house you are selling, then don't. Sellers usually pay for the closing cost to expedite the sell.
2007-12-18 04:41:51 · answer #4 · answered by Douglas T 1 · 1⤊ 0⤋
If you are in a sellers market with your current house I wouldn't agree to pay closing costs for the buyer. Someone else will make an offer that includes closing costs.
You are responsible for real estate fees as the seller.
2016-10-22 04:45:35 · answer #5 · answered by ~~Birdy~~ 7 · 0⤊ 0⤋
On the house you are selling you have to pay...Commission(for the real estate agent), deed stamps (if they apply to your state) Prorated taxes for the time you lived in the house unless you already paid the taxes then you will get a credit and sometimes some deed and document fees and depending on the state a small portion of the attorneys fees. These vary from state to state and will be taken out of your profits on the sale of your home.
2007-12-18 12:18:36 · answer #6 · answered by melissaw219 3 · 0⤊ 0⤋
This varies by area.
Some areas have transfer taxes and other fees to be paid by the seller. But as with most things, closing costs are negotiable. In this market, it is unlikely that you will get a buyer to pay your closing costs.
2007-12-18 09:12:31 · answer #7 · answered by godged 7 · 0⤊ 0⤋
For a seller, closing costs may include:
- document stamps (in FL, that's approximately $7 per $1,000 of the sales price),
- pro-rated real estate taxes
- recording fees
- commission (if you used a realtor)
- admin fees (if you used a realtor working for a broker who charges them)
- overnight mail fees
- wiring fees (if applicable)
- costs of any warrantable repairs agreed to in the sale
- prepayment penalties on your mortgage or home equity line (where applicable)
That's about it. The only silly question is the one not asked.
Good luck and best wishes.
2007-12-18 05:32:44 · answer #8 · answered by venicefloridarealtor 4 · 1⤊ 0⤋
No. Not unless it is in the contract. You can probably negotiate the closing costs of your new home too.
Don't be afraid or embarrassed to ask.
Good Luck.
2007-12-18 04:36:56 · answer #9 · answered by Anonymous · 0⤊ 1⤋
Yes. Title search, inspections, for 2.
2007-12-18 04:37:17 · answer #10 · answered by ed 7 · 0⤊ 1⤋