Buyers requesting closing costs whats that about (Arlington, Vienna: sale, mortgage)

[imcurious]

It's all about what the market will bear. As someone else said, it is a buyer's market in most local markets and if you want to sell your house, you might agree to some accommodations (or not).

[Dwellington]

How about actually listing your homes at realistic prices, then buyers wouldn't need to be asking for the closing costs. Looking at comps, the majority of sellers are pricing their homes way too high--be it greed, underwater, etc.. No wonder this is happening.

[Carlingtonian]

Originally Posted by Dwellington

How about actually listing your homes at realistic prices, then buyers wouldn't need to be asking for the closing costs. Looking at comps, the majority of sellers are pricing their homes way too high--be it greed, underwater, etc.. No wonder this is happening.

I agree that a lot of homes are overpriced, but even the ones priced at realistic levels are still expensive enough that most people will probably struggle to come up with a down payment and closing costs.

E.g., a small 3BR/2BA house near us just sold for about 680, in two days. Even for an FHA loan, that 3.5% down payment is almost 24K. Add at least 10K for buyer closing costs, and you can see how it's tough for a lot of people--even existing homeowners with good jobs and great credit.

[Denton56]

When we were buying our house the agent said it was more common than not for buyers to ask for closing costs. Our seller was offering $10,000 at closing. I assume that was to cover closing costs. It didn't matter to us, we simply viewed it as $10,000 more off the price. Our agent said many buyers put all their money down on the house and have nothing left for closing. Seems strange to me, but that's how it's working now.

Originally Posted by nancy707

We have our house on the market and are wondering why are buyers requesting assistance with closing costs...now call me crazy but I have always paid my own closing costs

If this is now the norm what is considered a reasonable amount for a buyer to request ?

[Denton56]

Originally Posted by Dwellington

How about actually listing your homes at realistic prices, then buyers wouldn't need to be asking for the closing costs. Looking at comps, the majority of sellers are pricing their homes way too high--be it greed, underwater, etc.. No wonder this is happening.

Are the houses selling? If not, they're overpriced. The market decides the right price.

[Denton56]

Originally Posted by ChristineVA

Back in the day, in 1989, when I was buying my first home, this was a common practice. The housing market, at that time, was what I would call normal. It could take months to move your home. Sellers often offered incentives such as home warranties, help with closing costs, and other throw ins, to get their home to move faster than the neighbors' homes.

Then the bubble came and buyers got NOTHING and were lucky if they just won a bidding war.

Since homes are moving slower now, I can see where this might be coming back into favor, although, it was my impression that regular home sales (not foreclosures and short sales) were in very high demand and weren't staying on the market long.

If you think your house is a hot commodity, I would not agree to it.

Doesn't everyone think that their house is a hot commodity? Priced right any house will sell quickly.

[eyeball]

Originally Posted by Dwellington

How about actually listing your homes at realistic prices, then buyers wouldn't need to be asking for the closing costs. Looking at comps, the majority of sellers are pricing their homes way too high--be it greed, underwater, etc.. No wonder this is happening.

Two houses have come on the market recently on my street. They have been priced at what I would have thought was about 10% too high. The first one sold before the open house for full price. The second one has its first open house tomorrow, and judging by the traffic that's been in and out of there in the past two days (since it went on the market), I'd say it'll be under contract by tonight. So I was wrong, they were not priced too high. Judging by the volume of interest and speed of going under contract, if anything, they're under-priced. It is definitely NOT a buyer's market in North Arlington in the 700-800K range.

[twinmma]

It is common place to ask for closing costs as of late. (meaning the past few years) You got some great reasonings here but mostly it helps the buyer not have to come up with as much money...and money is tight.

Buyers can ask for different amounts, but 3% is typpical.

Good luck!

[djmont]

It's a negotiation. All that matters is the bottom line. Emotions and feelings and "what is normal" don't enter into it. If the bottom line meets your price, take the deal.

[JEB77]

Originally Posted by Dwellington

How about actually listing your homes at realistic prices, then buyers wouldn't need to be asking for the closing costs. Looking at comps, the majority of sellers are pricing their homes way too high--be it greed, underwater, etc.. No wonder this is happening.

I know which house this is, and it's very realistically priced in an area where almost every home that has gone on the market since mid-2010 has gone under contract in 60 days or less. It's precisely the type of house that are in frequent demand in Vienna (where many of the newer houses are considerably more expensive, and many of the older, less expensive houses have considerably less space and fewer amenities).

That won't discourage some potential buyers from asking for closing costs and everything else under the moon, because it may be a buyer's market in Las Vegas, Jacksonville and Phoenix, but there's no reason for her to accept anything less than what she thinks a buyer in that part of Vienna should be prepared to pay.