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The wife and I will be looking for a home in the next month or so.
One of my requests to my realtor when we find a home is "closing costs." I do not want to pay for closing costs.
Is it unrealistic of me when I put in a bid to request the seller to pay closing costs? I would then probably pay the sellers asking price if I feel as though it's a good price.
I'd like to hear feedback from you guys on this, even people currently selling a home.
If you're selling a home for $135k, the buyer offers you $135k but seller must pay closing would you take the offer? Of course the situation could be different for some. Closing is usually 3.5% of the sale price. So you would really be getting 96.5% of your asking price?
You do understand that you, the buyer, are actually paying the closing costs and not the seller, right?
In your example, you offer $135k and ask for $5000 for the seller to pay closing costs. That means the seller only netted $130k, and YOU, the buyer, financed the extra $5000 over a 30 year term (or whatever your rate terms are).
NO seller EVER actually pays closing costs.
So, if the house is listing at $135k and the asking price is actually a very good asking price, you're probably going to need to ask $140k in order to get your closing costs paid of the $5k.
The seller doesn't care about closing costs, they care about the money in their pocket. They want to net what they want to net.
you should have money saved for a down payment plus closings costs or don't buy
I am not sure who left me the feedback, but thank you. In response to your statement I have money for both down payment and closing. I like to have as little money out of pocket as possible when going to buy a house aside from the down payment. I undertsand it would be better to pay the closing myself, thus lowering my monthly mortgage and payment. If I do not have to pay out of pocket for closing costs at the time of the sale, and spend an extra $25 a month on my mortgage it would be worth it to me.
You do understand that you, the buyer, are actually paying the closing costs and not the seller, right?
In your example, you offer $135k and ask for $5000 for the seller to pay closing costs. That means the seller only netted $130k, and YOU, the buyer, financed the extra $5000 over a 30 year term (or whatever your rate terms are).
NO seller EVER actually pays closing costs.
So, if the house is listing at $135k and the asking price is actually a very good asking price, you're probably going to need to ask $140k in order to get your closing costs paid of the $5k.
The seller doesn't care about closing costs, they care about the money in their pocket. They want to net what they want to net.
If he just happen to offer 135K ("the good asking price") and 5K in closing and if the seller accepts it, then what?
I am selling my house in northern VA (outside of Washington, DC). My house went under contract only DAYS after it went on the market. It's a hot market for my area, type of house, etc. The new Buyer offered $8,000+ over the Asking Price and he would pay all Closing Costs. He out-bid all of the others because he offered more AND he offered to pay the Closing Costs.
If he just happen to offer 135K ("the good asking price") and 5K in closing and if the seller accepts it, then what?
I was just giving a scenario. In the lower-end price ranges, more times than not, you have to go above the asking price in order to come below it with closing costs. Maybe he wants to do $137k with 5k which means the seller nets $132k instead of the full asking of $135k.
It's the higher price ranges where the sellers have more wiggle room to come off their prices to allow for closing costs. In the lower prices, they go up in price for the same effect.
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