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Old 07-23-2010, 06:32 AM
 
31 posts, read 77,431 times
Reputation: 16

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Our realtor is bringing an offer this evening, she already told us what it was though. Its a full price offer but buyer is asking that 6% of closing costs be financed into his mortgage, guessing he doesnt have the cash. I have never ever heard of this before. Our realtor says the only way this affects us is that the house will now have to appraise for the asking price plus the 6%, and honestly I dont think it will, so realtor says we should counter saying only 3% but i dont know what to do. I lost alot of sleep last night over this. Can anyone give us any advice?
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Old 07-23-2010, 06:36 AM
 
Location: The Greater Houston Metro Area
9,053 posts, read 17,191,612 times
Reputation: 15226
First of all, it's common. However, it has to appraise at that amount. Your Realtor should be able to come close to what it will apppraise. If your Realtor doesn't know - then I don't know what to tell you.

I will have to check - but I thought we just passed the deadline this month where they adjusted the limitations for seller's contribution to 3% for FHA.
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Old 07-23-2010, 06:41 AM
 
31 posts, read 77,431 times
Reputation: 16
Thankyou. Im confused though, we wouldnt actually be contributing he is going to pay all closing costs so do you just mean on paper? This is our first time selling a home so we are lost, have a crappy realtor so not much help there.
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Old 07-23-2010, 07:32 AM
 
Location: Pearland, TX
3,333 posts, read 9,170,918 times
Reputation: 2341
Quote:
Originally Posted by mgarcia2411 View Post
Our realtor is bringing an offer this evening, she already told us what it was though. Its a full price offer but buyer is asking that 6% of closing costs be financed into his mortgage, guessing he doesnt have the cash. I have never ever heard of this before. Our realtor says the only way this affects us is that the house will now have to appraise for the asking price plus the 6%, and honestly I dont think it will, so realtor says we should counter saying only 3% but i dont know what to do. I lost alot of sleep last night over this. Can anyone give us any advice?
That makes no sense whatsoever. Why would a contract with you (the seller) include a stipulation that the realtor fees be part of the mortgage? You have no control over how much his bank will finance. Rolling that 6% is between the buyer and the mortgage underwriter... it has no bearing on whether you sell it to them or not. You need to have the buyer get pre-qualified for an amount that includes the extra 6%. I think your realtor is a dimwit... either that or I'm reading this wrongly.

Just sayin'...

Ronnie
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Old 07-23-2010, 07:36 AM
 
Location: The Greater Houston Metro Area
9,053 posts, read 17,191,612 times
Reputation: 15226
Quote:
Originally Posted by HoustonRonnie View Post
That makes no sense whatsoever. Why would a contract with you (the seller) include a stipulation that the realtor fees be part of the mortgage? You have no control over how much his bank will finance. Rolling that 6% is between the buyer and the mortgage underwriter... it has no bearing on whether you sell it to them or not. You need to have the buyer get pre-qualified for an amount that includes the extra 6%. I think your realtor is a dimwit... either that or I'm reading this wrongly.

Just sayin'...

Ronnie
You are reading it wrongly - OP is talking about 6% of sales price being contributed to buyer's closing costs - it has nothing to do with the Realtor fees.
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Old 07-23-2010, 07:41 AM
 
Location: Pearland, TX
3,333 posts, read 9,170,918 times
Reputation: 2341
Quote:
Originally Posted by cheryjohns View Post
You are reading it wrongly - OP is talking about 6% of sales price being contributed to buyer's closing costs - it has nothing to do with the Realtor fees.
Okay, got it.
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Old 07-23-2010, 08:36 AM
 
31 posts, read 77,431 times
Reputation: 16
Yes sorry if I worded that wrong, his closing costs not our realtor fees. So as long as it appraises at that amount it will be fine but I am not sure if it will so thinking about telling them only 3% just to be sure his bank will finance the deal. Does this sound fair?
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Old 07-23-2010, 08:38 AM
 
Location: Pearland, TX
3,333 posts, read 9,170,918 times
Reputation: 2341
Quote:
Originally Posted by mgarcia2411 View Post
Yes sorry if I worded that wrong, his closing costs not our realtor fees. So as long as it appraises at that amount it will be fine but I am not sure if it will so thinking about telling them only 3% just to be sure his bank will finance the deal. Does this sound fair?

Again, I'm not a realtor but I wouldn't go back with a counter other than "get prequalified for the amount and we'll talk".

Just my $.02

Ronnie
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Old 07-23-2010, 08:54 AM
 
1,042 posts, read 3,263,241 times
Reputation: 333
It is a very standard practice for the buyer to ask the seller to pay part of or a portion of the closing costs. Ya see it on House Hunters all the time!Hehehe!
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Old 07-23-2010, 08:57 AM
 
2,639 posts, read 8,285,669 times
Reputation: 1366
nothing to lose sleep over...if it doesnt appraise they cant buy it. It is still on market and you'll have to wait for another buyer anyway. What can it hurt?
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