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Let's talk closing costs for home buyers
Posted on 3/20/16 at 3:39 pm
Posted on 3/20/16 at 3:39 pm
Started this thread on the OT, but it was suggested to bring it to this board..
Do realtors play a part in convincing sellers to pay a portion of closing costs during a home purchase?
I'm a first-time home buyer. I'm going to ask for the seller to pay a portion of closing costs regardless of which home I choose to buy. My reasoning? They can only say no. I'm the guy with the money looking to buy so I feel like I hold some power.. somewhat anyways.
Let's not turn this into a "you shouldn't buy a home unless you have money for closing costs" thread. That's not the case and it's not what I'm getting at.
What are y'alls experiences with this?
Do realtors play a part in convincing sellers to pay a portion of closing costs during a home purchase?
I'm a first-time home buyer. I'm going to ask for the seller to pay a portion of closing costs regardless of which home I choose to buy. My reasoning? They can only say no. I'm the guy with the money looking to buy so I feel like I hold some power.. somewhat anyways.
Let's not turn this into a "you shouldn't buy a home unless you have money for closing costs" thread. That's not the case and it's not what I'm getting at.
What are y'alls experiences with this?
7
Posted on 3/20/16 at 3:42 pm to dualed
quote:
Do realtors play a part in convincing sellers to pay a portion of closing costs during a home purchase?
No, this is being driven by loan originators.
Posted on 3/20/16 at 4:57 pm to dualed
It's mainly driven out of practicality in my experience. The first time home buyer doesn't have the necessary cash for down payment AND closing cost majority of the time. So I slightly inflated sales price is agreed upon and it's essentially taken out of the sellers equity. Simple as that really.
Posted on 3/20/16 at 9:51 pm to dualed
quote:What market? What has your realtors told you about the market in terms of houses selling very quickly or not?
I'm a first-time home buyer. I'm going to ask for the seller to pay a portion of closing costs regardless of which home I choose to buy. My reasoning? They can only say no. I'm the guy with the money looking to buy so I feel like I hold some power.. somewhat anyways.
Posted on 3/20/16 at 11:02 pm to dualed
An agent may have *some* influence over the seller. It depends on their relationship and history, most likely. But for most sellers it mainly comes down to how strong your (net) offer is, how hot the market is and how motivated the seller is. Sellers and agents want clean contracts.
If it's a hot market, where all cash/no financing contingency offers tend to float through, or the request is part of an overall weak offer (full of contingencies), yeah, all they can do is say no or counter. Also, if it creates the perception that you're a marginal buyer that's strapped for cash, they may pass your offer over. You're only "the man with the money" if you have cash in your pocket or don't ask for a financing contingency.
If you have time to shop, there's no harm in trying.
If it's a hot market, where all cash/no financing contingency offers tend to float through, or the request is part of an overall weak offer (full of contingencies), yeah, all they can do is say no or counter. Also, if it creates the perception that you're a marginal buyer that's strapped for cash, they may pass your offer over. You're only "the man with the money" if you have cash in your pocket or don't ask for a financing contingency.
If you have time to shop, there's no harm in trying.
Posted on 3/21/16 at 9:33 am to dualed
I'm only worried about the net at the end of the day. If you price your house appropriately there is room to absorb the closing costs, and still get the amount you want out of it.
Posted on 3/21/16 at 10:00 am to dualed
If I think a house is worth 250K, I'm either going to offer 250K or I'm going to offer $257,732 with 3 percent seller contribution. I'd be in a position to cover full closing costs incase they choose option 1.
What the seller has the house listed for is of no value to me. If they don't like the offer, good luck to them with the next buyer. No hard feelings.
That mentality meant it took a year to buy my last house. Well worth it to me.
What the seller has the house listed for is of no value to me. If they don't like the offer, good luck to them with the next buyer. No hard feelings.
That mentality meant it took a year to buy my last house. Well worth it to me.
Posted on 3/21/16 at 7:46 pm to dualed
As many people have said here, paying closing costs are essentially buyer and market driven. If the buyer has limited funds, the seller agrees to a higher sales price, to offset closing based on what the buyer wants/needs to net and the difference between the appraisal and the value. If a house doesn't appraise, most banks (conventional) won't go above the lesser value.
You idea of me asking for it just because, will bite you in the arse because you will be paying a higher sales price than you could have received. So you will pay more in taxes, fees, and insurance. So over a 5 year period, you could end up paying more far more than what the buyer credited you. It is always best to get the lowest price, rate, then fees in that order.
You idea of me asking for it just because, will bite you in the arse because you will be paying a higher sales price than you could have received. So you will pay more in taxes, fees, and insurance. So over a 5 year period, you could end up paying more far more than what the buyer credited you. It is always best to get the lowest price, rate, then fees in that order.
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