Home Buying in Germantown>Question Details

rlm27609, Home Buyer in 38139

Do Sellers typically pay all closing costs on a home sold "as is"?

Asked by rlm27609, 38139 Thu Sep 27, 2012

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Brenda Jolly - I agree with you. However, the real question in search of better information from you, rlm27609 is - Is this a foreclosure/REO or is this an individual selling "as is".

Banks/HUD/REO sellers have a "zone" for their acceptance - a target net figure. A few other factors play a part also- how long the house has been on the market, is their special financing (in house from a bank, HomePath, etc.) and is this a preferred owner occupied sale (usually FNMA)?

My team sells a lot of Bank owned houses and we have been one bank's exclusive listing agents for over 14 years, so we are very well versed in REOs.

Feel free to contact us if you not currently working with another agent and we would be honored to help you out.

Jo Shaner
joshaner@kw.com
0 votes Thank Flag Link Fri Sep 28, 2012
Good evening rlm27609,

The concept of a Seller paying closing costs is called a "Seller's concession" and in most all cases is negotiated into the purchase price by your Realtor when you are making an Offer to buy a home. The "As Is" notation has nothing at all to do with the willingness or unwillingness of a Seller to consider and/or accept a Buyer's request for a Seller's concession.

Your Mortgage Banker who prequalified you should be able to help you with this based on local market customs in your area.

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Thu Sep 27, 2012
NO; not typically.
In fact, As-Is Sellers are "typically" either broke, or tight-fisted;
I would anticipate less co-operation on their part.

Good luck and may God bless
0 votes Thank Flag Link Thu Sep 27, 2012
As Brenda says below, closing costs as well as almost any other aspect of the purchase agreement are negotiable items. A seller paying any closing costs is a perk to the buyer, and an incentive for the buyer to purchase the home with the seller giving up what ever amount they agree to pay. That amount comes off the seller's net, along with many other costs associated with the sale of the home. A buyer, may need the seller to pay a portion of or all of the closing costs to enable them to purchase the home. In doing so, they may have to give up on something else they wanted in the deal to capture that concession. Closing costs can be a fairly significant cost to seller and especially the buyer considering the down payment requirements on certain types of loans and the amount of the purchase, some buyers simply don't have the cash set aside to lay-out both the down payment and the clsoing costs as well.
In addition, "be careful of a home sold as-is".. Always have the home inspected by a licensed and experienced home inspector, don't assume an appraiser is going to pick up on any and all defects of a property. And, if you're looking for closing cost assistance, the cost of some repairs may dwarf those and are in addition to any money you lay out for the actual purchase. Remember the movie "The Money Pit"?
If I can help you in any manner, don't hesitate to contact me.

Michael Bellaire, Broker, ABR
0 votes Thank Flag Link Thu Sep 27, 2012
Who pays closing cost is negotiated just like everything else in the offer. Seller may be willing to assist with buyers closing costs but in no way are they obligated to do so. Many times they are rolled into the buyers loan provided the property appraises for the full amount and the lender allows it.
0 votes Thank Flag Link Thu Sep 27, 2012
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