disadvantages of seller paying closing costs

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disadvantages of seller paying closing costs

Let’s dig in with a practical example and find out a little more about what closing costs are, which ones you can expect to see as part of your home sale, and which ones you’ll be responsible for paying once your home sells. Now the whole reason this happens is so that the buyer can FINANCE the closing costs. Here’s an example. Let's take a look at an actual transaction to see what happened. Seller contributions toward closing costs, in reality, is a way for the buyer to work the fees into the mortgage loan. So if the seller isn't out any dough, who paid for the closing costs? I'll say again: the buyer ALWAYS pays closing costs. For example; Let’s say you’re going to make an offer on a $200,000 home. Disadvantages of Seller Paying Closing Costs. So you might be better off paying for them in cash during the closing stage. So those buyers might also ask the seller for No problem, we re-work the paperwork so that the buyer will pay the seller $305,000 and the seller will pay the $5000 back to the buyer for the closing costs. Let’s go back to the $250,000 list price scenario, but now there are multiple offers on the table and you need to compete. You decide to go big and offer the full $275,000 that you are approved for and request that the seller pays $5,000 towards your closing costs, netting the seller $270,000. Wouldn't all buyers want the seller to pay them? They countered with $455. This post is long overdue. Closing costs happen when the home is exchanged and title is handed over. The total for these fees can be anywhere from 2-5% of the loan amount. Not necessarily. It can also benefit the seller by attracting more buyers in a market where inventory outweighs demand. Answer: The buyer. Just expect the seller to counteroffer with a higher home purchase price of … When bidding on a home, you can offer $350,000 and request $3,000 in concessions to cover some of your closing costs. Matt Heisler, // , Heisler & Mattson Properties182 Turnpike Road, STE 209, Please enable Javascript to comment on this blog.

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