Home Buying in Edmond>Question Details

Mwmatthews90, Home Buyer in Oklahoma City, OK

FHA closing costs

Asked by Mwmatthews90, Oklahoma City, OK Sun Aug 12, 2012

If I make an offer below listing price and that offer is accepted, what would my chances be of the seller paying 6% of my closing costs.

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Answers

11
Slim to none. Back years ago it was common, but not so much anymore. It depends on the seller really.
0 votes Thank Flag Link Tue Jul 23, 2013
You can ask for the seller to pay closing costs. However, that does not mean you will get your closing costs paid. Your Buyer's Agent will negotiate with the Seller's Agent to determine what will or won't be paid.
0 votes Thank Flag Link Tue Jul 23, 2013
Seller paid closing costs need to be negotiated in the contract. When I bought my house I used Josh Barnett for my realtor services. He negotiated for the seller to pay my closing costs and the prepaid items. Give him a call @ 405-515-7965
0 votes Thank Flag Link Tue Jul 23, 2013
It really depends on the seller. If they feel the offer is good enough, and have the money for closing costs there should be no reason for why they would not accept paying for them. If the sellers are paying closing costs, you must include that in the offer you send them so they can either approve or disapprove. We see a lot of buyers having their closing costs paid by the seller. Get with your realtor and have them do an Estimate of Buyer's Costs for you, that way you know almost exactly what the seller would be paying.

Laurie Patterson
Keller Williams- Central Oklahoma
Web Reference: http://www.LaPatterson.com
0 votes Thank Flag Link Thu Mar 21, 2013
In today's market, many buyers are having their closing costs paid by the seller. It is basically wrapping your closing costs into your loan to pay out over the life of the loan rather than in one lump of cash at the time of closing. If you are wanting to ask for closing costs paid, you will include that in the offer, so you will be able to negotiate it in conjunction with the sales price and any other terms you may need. Depending on how high the current list price is and how willing the sellers are to negotiate, it is completely possible for you to get the house at below asking price WITH all your closing costs paid.

Let me know if I can be of service. I work with FHA buyers all the time, and the majority of the time, their closing costs are paid by the seller either in part or entirely.

Leah Brown, Realtor
Prudential Alliance Realty
0 votes Thank Flag Link Wed Jan 9, 2013
I work mainly with buyers and nearly all the contracts I've helped negotiate have included seller assisted closing costs. Even the ones that the buyer has put 30% down! We ask for what we want or need up front as everything is negotiatiable! I work with the the buyers mortgage person so the buyers know how much money they will need upfront and what their monthly payment will be. Sellers want to know what they will be taking away from closing as well so closing costs are part of the contract negotiations.

If you make an offer below listed price AND ask for 6% closing costs, the net result to the seller would be nearly the same as making that offer less 6%--for example listed price is 101,000 you offer 100,000 and 6% closing costs. The seller will receive about the same or within $500 of what they would receive if you made a 94,000 offer.

Good question. Good luck with your home search!
Susan
0 votes Thank Flag Link Sun Aug 19, 2012
I don't think that you would need the full 6% allowable. Your Realtor is required to provide you with an estimate of expenses and that should be close. The only way to know is to make the offer. It will depend on a number of factors: the area, how long the house has been for sale, how motivated the seller is, and how low your offer is. I have had people submit offers that were so low that they didn't even get a response back and either the house sold to someone else or the buyer ended up negotiating against themselves.
0 votes Thank Flag Link Sun Aug 12, 2012
Good Afternoon:
Depending on the total cost of your home closing cost will range between $4000.00 and $5000.00 however in most cases the seller can and will pay all of your closing cost for you. I can negotiate this on your behalf if you do not have a realtor:
If you do not please contact me and I will go to work on this immediately:

Thank You
John Phillips
405 413 0791
0 votes Thank Flag Link Sun Aug 12, 2012
I agree with Ryan about being upfront about the seller contribution during the negotiations. That said, right now on an FHA loan a rate of 3.5% allows me to give a lender credit towards closing costs of about $1,500 for every 100k of the loan amount. So I may be able to cover half of your closing costs and bring you and the seller together. In any case, at least ask your current lender how much of a lender credit he can give you to see how much the remaining closing costs/prepaids will be.

I hope this helps.

Will
0 votes Thank Flag Link Sun Aug 12, 2012
It would be best for you to negotiate the seller-paid costs along with the other points of your offer. Springing that on the seller after everything else is negotiated could likely blow the negotiation up.
0 votes Thank Flag Link Sun Aug 12, 2012
Mwmatthews90,

5k, seller concession for buyer's closing costs is typical, in today's market. Depending on the sales price of the home, the 5K will vary from the FHA 6% allowable.

Hope this helps,

Josh Barnett, Realtor
Web Reference: http://www.1ListingFee.com
0 votes Thank Flag Link Sun Aug 12, 2012
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