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Has anyone had luck with the seller paying closing costs? Or how about any good quick programs that allow the buyer to roll over the full amount of closing costs into the mortgage?
Thanks
Colleen
Well, all I can say is that if I were the seller, I would not pay closing costs. But then again, my properties are paid off so I'm not desperate, either.
It's pretty typical here to ask a seller to pay all or part of a buyer's loan closing costs. If the buyer needs more than what a seller is willing to pay, you can add it on to the price of the house and still have it come out of the seller's proceeds. The house still needs to appraise for the sales price, so you can't usually push this up too high to cover closing costs unless the house is priced really well.
It's pretty typical here to ask a seller to pay all or part of a buyer's loan closing costs. If the buyer needs more than what a seller is willing to pay, you can add it on to the price of the house and still have it come out of the seller's proceeds. The house still needs to appraise for the sales price, so you can't usually push this up too high to cover closing costs unless the house is priced really well.
I am assuming this is different than seller concessions? correct
no - they're the same thing - a seller paying part of the buyer's loan costs to purchase the house is a concession.
well here in ny, we are only allowed up to 6% and now with the mortgage situation its gone down to 3% which wont cover the full closing on say a 100k home
Well, all I can say is that if I were the seller, I would not pay closing costs. But then again, my properties are paid off so I'm not desperate, either.
Why not?
If you were to get $206k for a property you are willing to sell for $200k, you would not be willing to pay $6k for the buyer's closing costs??
If you were to get $206k for a property you are willing to sell for $200k, you would not be willing to pay $6k for the buyer's closing costs??
A seller paying the buyers closing costs is just to make it easier for the buyer to purchase their home. If they aren't under any time constraints or don't have to sell, then a seller shouldn't have to.
You can always add the closing costs to the price of the house so you won't be taking a hit and the buyer doesn't have to pay for them up front.
It all depends on the seller's and buyer's motivation. Often when a seller offers less of a co-broke than my buyer is responsible for, I get the seller to include the full fee as part of their concessions. They actually didn't save anything, and got less than full service.
well here in ny, we are only allowed up to 6% and now with the mortgage situation its gone down to 3% which wont cover the full closing on say a 100k home
I usually talk with the buyer's lender and find out how much they need covered and write the offer based on the information they provide. If it's not allowed by the lender, then the buyer needs to come up with money. If they don't have it, then they're not really a qualified purchaser and should be waiting until they have funds available to complete a purchase.
I am getting ready to close on a purchase where the list price was $164,900 - the buyer's agent wrote up the purchase for $169,000 with the seller contributing $10,000 to a special loan program for first time buyers that covered their downpayment and closing costs. The net offer was $159,000, which was pretty reasonable in this market. It's the same result as having a cash buyer come in with an offer of $159,000.
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