Read this Post to Get the Facts on Who Pays Closing Costs in Clarksville TN
New home sales represent 20-30% of the sales in Clarksville, TN. Buyers not only get homes packed with amenities but they get a new home warranty. Though most of the closing costs in a sale belong to the buyer, the builders in Clarksville have been paying most if not all of the closing costs for buyers on new construction homes. In 2016, there were 1017 new homes sales through the MLS in the Clarksville area.
If the buyer is using VA financing, the buyer may not have to invest in a downpayment. Couple this with help from the builder of 3-4% of the sales price toward closing costs and prepaid items like taxes, insurance and prepais interest and the buyer can get in with little or no upfront money.
Even on FHA and Conventional financing the builders will pay towards closing costs. Sometimes there are limitations from the lender based on loan to value ratios as to how much the seller can contribute in seller concessions. Paying closing costs and prepaid items for the buyer are considered concessions.
In the median sales price range of $160,000 to $170,000 you can expect to see these seller concessions as very customary and standard though not mandatory on the seller. As the price range goes up, the percentage of contribution goes down. In higher price ranges of over $300,000, expect to see fixed dollars amounts and percentages of sales price to be in the 2-2.5% range. Builders thinking is if the buyer can afford a $300,000 home, then surely they can pay some of their own closing costs.
For more information on buying new homes in Clarksville TN, contact The Real Debbie Reynolds at 931-320-6730.