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I'm selling my home for 139,000 and the new owners want 4500.00 in closing costs. My house is in Tennessee. My agent says the seller pays the closing costs which I have never heard of this before.
They might be asking you to cough up the money to close their loan...
You should have to pay costs for the title search, possibly title insurance, fee to transfer the title, etc. Those are all things that you need to deliver a clear title, but contributing to their down payment is optional on your part. You should ask your agent to detail what 'closing costs' you'll be paying before you agree to pay them.
Your Buyers may be able to get a mortgage, but may be low on cash. The $4500 likely represents the loan costs.
In actuality, it probably represents an ability for them to get into a home, working with limited cash reserves.
The main thing is to look at the bottom line, and your net proceeds from the transaction, and see if that is a number you can live with.
Your Buyers may be able to get a mortgage, but may be low on cash. The $4500 likely represents the loan costs.
In actuality, it probably represents an ability for them to get into a home, working with limited cash reserves.
The main thing is to look at the bottom line, and your net proceeds from the transaction, and see if that is a number you can live with.
Good luck!
I concur with Mike.
Just ask your agent what you are leaving the table with. Does it really matter what costs they want you to pay if you are walking away with an amount acceptable to you?
They might be asking you to cough up the money to close their loan...
You should have to pay costs for the title search, possibly title insurance, fee to transfer the title, etc. Those are all things that you need to deliver a clear title, but contributing to their down payment is optional on your part. You should ask your agent to detail what 'closing costs' you'll be paying before you agree to pay them.
When someone asks for $x for closing costs you generally will not know exactly what it is going towards in the closing costs until the title company works up a HUD.
Why should it matter to the seller if the buyer wants him to pay for a circus clown to handle the closing or a mime to entertain while they move in?
If he is getting his bottom line that really should be all that matters.
I'm hoping she didn't actually say that. Your typical closing costs in Tn as the seller are:
Broker's commission
Transfer taxes
Documentary Stamps on the Deed
Title insurance
Property taxes (prorated)
While it can be negotiated who pays for what, it's not mandated that the seller pays the typical buyers closing costs. I just want to make sure you understand that. The buyer is asking for a concession. You can agree to it or not agree to it.
My 2 cents. If you had questions about closing cost your agent should have adressed them with the explanation of what they entail. He/she should make it clear that while it is something that you do not have to do, that if you come away from closing with an amount that you can live with it may be in your best interest to pay them given the market these days. When my purchasers are asked to pay closing cost of say 4,500 there is no way to know until the final HUD if they would be paying more than need be so the offer is countered stating UP TO 4,500. IF they desire to pay the cost that is.
Palm you and I were thinking the same thing. I had a problem with the fact that the seller was told that the seller pays the closing costs. I'm in hopes the agent was just refferring to what was meant by the purchasers want 4,500 in closing. Again it is not a requirement!
The problem here is I have a 130,000 in my home and there is not profit here. I will also have to pay 2000.00 for sewer hook-up to the street from a septic tank because of the requirements for the mortgage my agent has told me. The agent never told me before signing the contract that I would have to pay closing costs. When I bought my house in the past I paid for the title insurance and a land survey.
The problem here is I have a 130,000 in my home and there is not profit here. I will also have to pay 2000.00 for sewer hook-up to the street from a septic tank because of the requirements for the mortgage my agent has told me. The agent never told me before signing the contract that I would have to pay closing costs. When I bought my house in the past I paid for the title insurance and a land survey.
Thanks, John
What does the contract say about paying closing costs?
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