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Northern Illinois Real Estate- What closing costs can we negotiate for the seller to pay?

By Julie Anne

Real Estate Agent with Keller Williams

January 29, 2009 12:19 AM

7810 turnberry lakewood illinois

Real Estate Tip: The Seller May Pay for...
The closing costs for buying a home may be confusing to some buyers. One example would be if you think you have finally saved enough for a down payment on your first home, with just enough left over to buy some new things for the home including maybe appliances, furniture, tv etc. Then there are closing costs you weren't anticipating, is this a setback? It may seem like it.

Our team helps you negotiate with the seller for a possible credit at closing for some of the closing costs associated with buying a home. The rule is, if the buyer is putting 5% down on the purchase of a new home, the sellers may pay 3 percent maximum of the sales price of the home. The seller can contribute up to 6 percent of the sales price to cover the buyer's closing costs of the new home if the buyer is making a down payment of 10% or more. Some of the items that must be paid by the buyer are, such as prepaid taxes and the first month's mortgage payment. Some of the contributions a seller can make for the buyer of a home include: appraisal, points, title insurance, settlement attorney fees, state or local transfer taxes and similar items.

Please keep in mind that if the credit is included in the price of the house, the appraiser for the mortgage will have to justify the amount, based on sales prices of similar homes in the neighborhood. It will have to appraise at the price on the contract.

Our team is ready to help you with these and any other real estate questions you may have. Give us a call today to help you buy a home or sell a home in Barrington, Deer Park, Palatine, Schaumburg, Lake Zurich or any of the surrounding areas in North IL.