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Seller pays closing costs??
So I've been watching a lot of HGTV and on Property Virgins & House Hunters, I've seen a lot of the buyers asking that the sellers pay or help pay the closing costs...
Is this ever done in real life?? Would you offer a little more than you would have if you are asking for this?
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Posted 5/3/11 9:50 PM  |
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alli3131
Peanut is here!!!!!!
Member since 5/09 18388 total posts
Name:
Allison
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Re: Seller pays closing costs??
Not in NY. You can do a sellers concession but all that is is closign cost get rolled into the contract price
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| Posted 5/3/11 9:55 PM |
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Re: Seller pays closing costs??
Posted by alli3131
Not in NY. You can do a sellers concession but all that is is closign cost get rolled into the contract price
So who ultimately pays them? Does it come out of the sellers pocket or the buyers? Can they be partially rolled in?
Im clueless on this so TIA!
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| Posted 5/3/11 10:07 PM |
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Re: Seller pays closing costs??
Posted by MrsECullen7319
Posted by alli3131
Not in NY. You can do a sellers concession but all that is is closign cost get rolled into the contract price
So who ultimately pays them? Does it come out of the sellers pocket or the buyers? Can they be partially rolled in?
Im clueless on this so TIA!
A sellers concession is out of your pocket!!! Say you have an accepted offer of 300,000.00 and you want a 3% sellers concession....this gives you 9,000.00 towards closing and brings up what you are financing to 309,000.00. I believe each bank has different rules with the max % you can use for a sellers concession. Also the house has to appraise for the 309,000 or more for it to be approved. HTH
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| Posted 5/3/11 10:16 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: Seller pays closing costs??
Posted by MrsECullen7319
Posted by alli3131
Not in NY. You can do a sellers concession but all that is is closign cost get rolled into the contract price
So who ultimately pays them? Does it come out of the sellers pocket or the buyers? Can they be partially rolled in?
Im clueless on this so TIA!
What our lawyer told us is that you can ask for a sellers concession. Example - purchase price of home 300k, if your closing costs are 10k you will pay 310k for the house and the seller basically gives you back that money at closing to pay your closing costs. I believe the sellers must agree to this and it can't be more than 5% (I could be wrong about this)
You as the buyer are ultimately responsible to pay them
I'm not sure why they don't do it the regular way in NY would love to know...
Message edited 5/3/2011 10:17:36 PM.
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| Posted 5/3/11 10:16 PM |
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Re: Seller pays closing costs??
I get it now! Thanks! :)
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| Posted 5/3/11 10:18 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Seller pays closing costs??
you can always ask the seller to pay closing costs, it is just not customary in NY because closing costs are so expensive (only other state w/ recording tax is MA).
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| Posted 5/4/11 7:41 AM |
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Re: Seller pays closing costs??
You can still get a seller's concession up to 6% (5% is not the max, as someone else was wondering). But as others have said, you are basically financing your closing costs and they become part of your mortgage balance.
Also, keep in mind that the house must appraise for the TOTAL amount, including the sellers' concession. So if you are buying a $400K house and need a 6% seller's concession, the house must appraise for $424,000.
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| Posted 5/4/11 9:17 AM |
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RocPin
Life's Beachy <3
Member since 2/08 6765 total posts
Name:
Heather
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Re: Seller pays closing costs??
I think its harder to come by in NY.
I had the sellers pay my closing cost plus offered under the asking price and both were accepted but I live in VA. If you are purchasing a home right now around here, you can count on the sellers paying the closing cost.
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| Posted 5/4/11 9:20 AM |
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gdubs
This baby is awesome!
Member since 11/10 2467 total posts
Name:
Gina
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Re: Seller pays closing costs??
A friend of my offered asking price and asked the sellers to cover closing. That saved them about $16k... so I'm not sure what they paid for their house or how that worked percentage wise with the sellers concession...
Message edited 5/4/2011 11:04:46 AM.
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| Posted 5/4/11 11:03 AM |
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