Closing Costs Are the Buyers' Responsibility
Buyers need to be educated on what their responsibilities are and what the seller handles. Carla does a great job explaining that closing costs are in the buyers corner. Please post your comments on her original post.
It Costs MONEY to Buy a Home
I hate to break it to buyers. . . but it costs money to buy a home.
Long gone are the days that all a buyer had to do was breath on their loan documents and get the key to their home.
Loans are harder to obtain. Appraisals are tight.
Still . . . "borrowing" money is quite attractive and relatively cheap However, buyers need to understand one thing:
They will have to SPEND MONEY to buy a home.
I pride myself on working with buyers -- exclusively. I've done so since 1999. I ALWAYS try to negotiate the buyers' closing costs in the offer. The majority of the time, I'm very successful. On a few occassions sellers would not budge and they did not concede closing costs. On a few occassions I've negotiated most, if not all, of buyers' closing costs -- on OCCASSION. This is a post about Buyers thinking they are somehow entitled to closing costs.
What's Involved In A Home Purchase -- Money!
- A LOAN! Talk to a Lender: Buyers would do themselves a favor to talk with a LENDER well in advance of their home purchase. If they are thinking about a home purchase 6 months out . . . now's a GREAT TIME! If you've been raring to go . . . talk to a lender before touring property.
- Find out what loans are available: Are you going to put down 10% Do you have 20% downpayment? There are FHA loans which require 3.5% down payment. Find out what you want to put down on a home.
- SAVE YOUR MONEY: It really isn't a bad thing to save money. Start saving and start saving NOW!! If you DO NOT use it in a home purchase that's great! Money in the bank. But if you're planning on buying a home -- YOU HAVE GOT TO HAVE MONEY TO DO SO!
Don't Rely on Sellers Paying YOUR Closing Costs
Closing costs are a given in a real estate purchase unless the buyer is paying with cash. Otherwise, closing costs will be part of the home purchase. Closing costs include, but are not limited to:
- Lender fees/points
- Escrow fees
- Pro-rated taxes
- Pro-rate hazard insurance
- Appraisal fees
- etc.
Buyer's closing costs CAN be negotiated in a real estate purchase. Buyer's closing costs CAN be requested in an offer, i.e., that seller contribute. But, it is NOT A GIVEN that Sellers will want to pay all of Buyer's closing costs or agree to pay for all, or some, of buyers' closing costs. Don't assume they will. If you're a buyer and if anyone is telling you . . .
Sellers pay Buyers' closing costs . . .
It's typical for Sellers to pay for all of Buyers' closing costs . . .
Sellers always pay for all of Buyers' closing costs . . .
Sellers have to pay for Buyers' closing costs . . .
Buyers closing costs are always paid by the Sellers . . .
THEY ARE WRONG -- DEAD WRONG!
Closing costs are NEGOTIABLE.
Closing costs are NOT the Seller's Responsibility . . . they are the BUYER'S RESPONSIBILITY.
Don't blame ME . . . your agent . . . if Sellers are UNWILLING to negotiate ALL your closing costs!
Don't blame ME . . . your agent . . . if Sellers are WILLING to contribute a portion, but not the entirety.
Don't blame ME . . . your agent . . . if someone OTHER than a licensed real estate agent has mislead you in to thinking that sellers owe you closing costs just because you want to buy their home.
All Things Are Negotiable in a Contract to Purchase
Everything can come to terms: the price, the close date, the earnest money deposit -- and the CONCESSIONS! However, there is nothing in a real estate transaction that is EVER "normal" or "typical." This includes buyer's closing costs! They can be negotiated . . . and in many transactions this has been negotiated successfully . . . but it is not a given. Nothing in a real estate transaction is a given. Absolutely nothing!
EBA Portland ~~ 100% BUYER REPRESENTATION ~~ 100% of the Time
EBA Portland, LLC is an Exclusive Buyer Agency serving the Metro Portland real estate market since 1999. If you’re a Buyer in the Metro Portland area (including: Beaverton, Tigard, Hillsboro, Lake Oswego, Downtown Portland,) and contemplating a purchase, talk with a Buyer’s Agent . . . better yet, talk to an Exclusive Buyers Agent. Exclusive Buyers Agents do not work for listing brokerages or Sellers. An EBA’s fiduciary duty is: 100% BUYER REPRESENTATION . . . 100% of the Time.
Carla Muss-Jacobs
503-810-7192
Carla@carlahomes.com
All rights reserved ©
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