Heck, everyone knows the answer to that question. Sellers say buyers do, and buyers say the seller should. Hmmm so how’s that work out in the real world?
For starters, sellers almost always pay the realtor’s commission and their own attorney’s fee. Plus, they often times pay for the owner’s title insurance, certain real estate taxes and any unpaid HOA dues. And they some times pay for all or part of the buyer’s closing costs.
Buyer’s settlement charges often run $4000 or more. They can include loan fees, title company charges, surveys, the first year’s home owners insurance premium, funds to set up the initial escrow account for taxes and insurance, and a few other items. Make no doubt about it… these are the buyer’s responsibility (unless it was negotiated in the Purchase Agreement for the seller to pay a specified amount towards the buyer’s closing costs).
Sometimes the buyer has limited funds and the only way they can make the deal work is if the seller does pay the buyer’s closing costs. So, if the seller has some leeway in his price he may agree to pay the buyer’s closing costs. In such cases, it’s likely the seller will want his full asking price, or awfully close to it. After all, if the asking price is $100,000 and the buyer’s closing costs are $4000, then the seller is really only getting $96000 if the deal calls for a 100k price and 4k in closing cost credit.
Need help figuring out how best to structure a deal so it’s a WIN-WIN? Easy… call me! Keep in mind…
“I work harder to make good things happen!” -Bob