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I'm trying to sell my home & received the following offer: $295k (asking $299k), they're putting no money down (100% financing), and the potential buyers want me to pay 6% towards their closing costs (6% in seller concessions). Is this typical? 6% seems like an awful lot of money. I don't think they're putting any type of good faith deposit down either. I'm not in a hurry to sell. The home has been on the market less than a month, but this is my first time selling & I've never heard of a seller paying 6% in closing costs in addition to the 5% I'm paying in commissions. They're waiving the right to an inspection which is nice, but I don't know that it's worth almost $18k since the house is in excellent shape.
It's not that uncommon to ask a seller to contribute to closing costs. It may be expressed as either a percentage or as a total dollar amount. As in any business deal, everything's negotiable. It is uncommon, in my experience, to not put down a good faith deposit, also known as Earnest Money. My husband and I move quite often and have purchased 9 properties. We've deposited Earnest Money on every purchase. If it is a tight market, a letter of pre-qualification may also be required by the seller. If it is a tight market. Do you have a real estate agent? We have tried "For Sale by Owner" and didn't like it. Every time, our agent earned their commission, and more, by getting our house sold for a price higher than the price we originally started with on FSBO. Good luck.
Last edited by smichboyd; 01-08-2007 at 09:34 PM..
Reason: Correction.
That is an awful lot of money. Instead of percentages, a value is usually used in non-Fairfield County transactions. This amount is anywhere between $2000 and $7500.
Thanks much for your feedback. I do have an agent - it's not a FSBO. If they don't have a good faith deposit or are pre-qualified for the mortgage, I think I'm going to turn down the offer. I'm getting more details this morning from my agent. If they have those 2 things, I may counter & offer $5,000 towards their closing costs. My agent said if I did counter, counter with a value (also like Rich Lee said) rather than a percentage. It's the first offer within the first month of listing, so I'm ok with it if it falls through. This is a learning process for me & I appreciate your all's feedback.
Thanks much for your feedback. I do have an agent - it's not a FSBO. If they don't have a good faith deposit or are pre-qualified for the mortgage, I think I'm going to turn down the offer. I'm getting more details this morning from my agent. If they have those 2 things, I may counter & offer $5,000 towards their closing costs. My agent said if I did counter, counter with a value (also like Rich Lee said) rather than a percentage. It's the first offer within the first month of listing, so I'm ok with it if it falls through. This is a learning process for me & I appreciate your all's feedback.
Attorneys prefer amounts over percentages. Do you happen to know the MLS number for your property? Also, in what town is it listed? I'm curious to see how inventory is moving there.
My counter was $295k, but only offering $5k (flat & no percentages) towards closing costs. I'll let you know how I make out.
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