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Closing costs have noting to do with a real estate agent or their fees, those fees are paid by the seller, they pay for their RE agent as well as the buyer's.
Without having a real estate agent who gets the closing money?
OK reed let me give u my 2cents, and sum real good advice. This guy is acting as thou he is a friend of the family, the absolute kiss of death to any real estate transaction. This has nothing to do with family, don't let the guy touch anything in your house. spend a few bucks, have the house appraised, as is ,by a pro, around 500$'s. Done by the right appraiser this is the amount of money a bank will lend on the house. Tell this person if he can come up with a 1,000$ deposit and a line of credit from a bank in 2 weeks you will sell him the house, yes there will be closing cost and he, or anyone else will also have to come up w/homeowners insurance, title search and a land survey along with sum other thangs. When this guy can't even come close, get a good real estate broker and get out of the way, lol. The broker will give you a good idea if it's worth fixing up the house or selling as is. Your gona thank me for this advice someday, this guy can barely pay 400 a month rent and he wants you to give him your house, forget it.
Without having a real estate agent who gets the closing money?
Closing fees are far more than realtors commissions. There's property taxes, insurance, water/sewer bills, mortgage stamp taxes, surveys, property transfer fees, state/local taxes, etc. You REALLY need a local real estate attorney.
Also they have to be careful at what rate the loan if because if it's too much there are usury laws, I believe they are called where borrower may own that home and not have to pay for it.
Here is my 2 cents worth.........well, may be worth more. I did a rent to own from a family member that I trusted my whole life. Some people looked at the contract and said "better see an attorney." Did I listen? No, I trusted this person with my life....really.
Fast forward, a few years! The person slammed me. What a mess. Had to get an attorney and I filed a law suit. Yep. The contract and the person I trusted was so messed up. Please, Please, know what you are doing. Sad to say, the family member and I never resolved our friendship......the contract was honored.
Without having a real estate agent who gets the closing money?
The title company. And the real estate agent's commission do not come from the buyers closing costs, it comes from the proceeds of the mortgage/sale of the home. the seller pays those not the buyer.
Last edited by LifeIsGood01; 02-29-2016 at 05:13 AM..
Here is my 2 cents worth.........well, may be worth more. I did a rent to own from a family member that I trusted my whole life. Some people looked at the contract and said "better see an attorney." Did I listen? No, I trusted this person with my life....really.
Fast forward, a few years! The person slammed me. What a mess. Had to get an attorney and I filed a law suit. Yep. The contract and the person I trusted was so messed up. Please, Please, know what you are doing. Sad to say, the family member and I never resolved our friendship......the contract was honored.
The only person I fully trust is my father, and my mother when she was alive. I don't fully trust my sister. I trust my aunt and uncle more than her. I trust her, but not fully.
I pay for a home the price I agree to pay, the seller takes 6% of the price that I pay and pays the listing realtor and the buyer's realtor. He's the one getting 6% less, not me. The money is coming from the sale of the house but the seller is the one who has to pay it. If I buy a home for $100K I buy it for that much, the seller gets $94K or less with other closing fees. He's paying. It's his loss.
Now if he paid his 3% and got 97K and I had to pay $103K I would be paying for it. That's not the case.
If I buy a $100K home that's what I get if it's appraised at that much, if the seller has to pay the agents he doesn't get $100k.
You are twisting things around for no reason.
Yes and the 5% fee is built into the price of the house. So if there were no agent involved, you'd be paying about 5% less for the house. But there is an agent involved, so the price of the house reflects the inclusion of that service, you are paying $100,000, and are therefore paying the commission.
That is why, if you are buying a FSBO, you should remove that 5% from your offer. If the vast majority of the homes are sold through agents, than a FSBO seller is making a mistake if he thinks that he is going to get the same money for his house as others who paid commissions. Unless he finds a sucker, he should expect to get less than the prevailing price, because the commission is no longer baked in.
The only person I fully trust is my father, and my mother when she was alive. I don't fully trust my sister. I trust my aunt and uncle more than her. I trust her, but not fully.
I have heard about some rules about buying real estate from relatives, rule #1: don't buy from a relative. rule #2: don't buy from a relative...........etc. Just get a real estate lawyer to sort out the legal stuff at the very beginning. I might have saved a lot of grief for everyone.......probably would have lost my bid for the house.....but then, as it goes; we love our home.
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