Seller Closing costs

By
Real Estate Agent with Frank Rubi Real Estate
I would like some info from you more experienced agents and brokers around the country.  I recently lost a buyer because the selling agent insisted that the seller pay no more than 200 in closing costs at the closing.  She said this was very common.  I have never seen this before.  It definitely helped kill the deal.  This house was in Covington Louisiana.  She said she had two sellers get charged high rates at closing.  Please tell me your experiences.
Posted by

 

 

 

 

 

 

  

 

Search New Orleans Real Estate                                      

All information is deemed accurate but not guaranteed.  We serve the entire NOLA metropolitan area give me or Frank a call at 985-640-1817 or 504-319-9696  

 Licensed in Louisiana (USA)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comments (9)

Ed DeChristopher
Fredericksburg Realty, Inc. - Fredericksburg, VA
CRS Fredericksburg VA

John:

Here in the Fredericksburg VA area it is very common for purchasers to ask for sellers to pay part of their closing costs; especially, when the market is slow (as it is now).

When the market was "hot" a few years ago sellers did not have to pay closing costs to get their homes sold.  A very different story now.

If your market is slow, then you sure did the right thing and the seller's agent may have screwed up bigtime!

Jun 26, 2007 06:58 AM
Allison Stewart
St.Cloud Homes - Saint Cloud, FL
St. Cloud Fl Realtor, Osceola County Real Estate 407-616-9904

Unless the sellers are advertising they will pay for all closing costs, and depending on where you are, it is an individual agreement. In Florida, it is common that each party cover their own closing costs, unless otherwise advertised. It can be an expensive undertaking.

Buyers usually pay for:

Appraisal

Inspections

Survey

Title Search

Homeowners Insurance

Mortgage origination

Taxes (pro-rated)

Sorry your deal collapsed

 

Jun 26, 2007 07:01 AM
Mike Elliott
Austin, TX

Everything is negotiable.  That's the key thing to remember.  Ed's comment is right, it's probably more common in a slow market, or if your buyer just doesn't have cash, raise the selling price (as long as it will appraise) and ask the seller to pay the difference in your original offer and the new price towards the buyer's costs. 

If you're in a HOT market and there are multiple offers, forget it.

Jun 26, 2007 07:05 AM
Ava Anderson
A-Z Atlanta Realty - Snellville, GA
Selling Atlanta from A-Z!
I have seen all closing cost paid and I have seen no closing cost paid.  It depends on the market, it's definitely all in the negotiations and how motivated the seller is.
Jun 26, 2007 07:09 AM
SHAUN WREN
LICENSE IS NOT PLACED - Lakeland, FL

Are you speaking of buyers closing costs or sellers closing costs?

Jun 26, 2007 07:10 AM
Susan Trombley
Trombley Real Estate - Wake Forest, NC
Broker/Realtor, Raleigh, Cary, Wake Forest, Youngs

I look at closing costs as the responsibility of the buyers. If they need assistance with closing to put in what their offer will be then add to the offer price what they need help in closing and that way they are financing their own closing costs for 30 years. That is how I put it.

It is the sellers responsibility to pay the commission and it is the buyers responsibility to pay their closing costs. Though you have to ask the sellers if it is ok for them to be able to finance it on our offer to purchase paperwork. 

Jun 26, 2007 07:39 AM
Pam Hofmann
Third Tennessee Realty & Associates, LLC - Crossville, TN
Your Crossville, Lake Tansi & Fairfield Glade Specialist
I agree that everything is negotiable. Here in Tennessee with most of my deals, the buyer pays their own  closing costs.
Jun 26, 2007 07:54 AM
Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA
FrankRubiRealEstate.com
John, you did say the seller only want to pay $200 of their cost. The Sellerwanted the Buyer to pay basically all closing cost. In this market, that wont go. At most, the seller cost would have been $300. So why would this stip even come up? The seller agent will have to explain to the seller what happen.
Jun 26, 2007 10:28 PM
Cathy Tishhouse
RE/MAX Showcase Homes - Royal Oak, MI
Royal Oak Real Estate
In Michigan, seller's pay a lot of closing costs:  In the past year about half of my deals the seller paid 3-6% of closing costs.  I have three deals pending and with two of them the seller is paying 2 & 3% closing costs.  It's all negotiable and after price, this is the first thing we look for - concessions.
Jun 28, 2007 10:34 AM

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?