Home Buying in Kodiak>Question Details

L.c, Other/Just Looking in Kodiak, AK

I found a house i like but i am going to make a offer less than listed can i ask that the closing cost to be included in my offer?

Asked by L.c, Kodiak, AK Wed May 9, 2012

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Hello. Yes you can. Everything is negotiable. On certain loan types however, certain items are required by policy dictated by that particular loan to be paid for by a specific party. For one example, on a VA loan, policy dictated by the VA requires the seller to pay for the brokerage commission. Certain closing costs and other items of interest vary locally. For example, here in Kodiak it is typical for the Seller to pay for the appraisal. If I may provide any assistance feel free to call/text me anytime at (907) 942-7201 or email at mattzytkowicz@kodiak1realty.com. You can also contact me on Facebook at https://www.facebook.com/MattZytkowiczRealtorWithAlaskaOneRealty
0 votes Thank Flag Link Mon Dec 23, 2013
Yes you can. However not all loan packages allow for certain types of closing cost to be paid by the seller.
I would suggest asking your loan orignator for which closing cost the seller can pay and what the cost is for each item.
I personaly think that any offer is a good offer and is workable by both parties.
However I would encourage you to put yourself in the sellers shoes and ask yourself how you would feel if a offer came to you for the house at the same price. After all you do not want to insult the seller but you still want to get the best deal you can and still get the property.
Best of luck to you.
0 votes Thank Flag Link Wed May 9, 2012
thank for your help.
Flag Thu May 10, 2012
This depends...

I'll give you a few examples...Let's say you want to offer 100K (an example).
Closing costs allowed by FHA are 6K, and 3K conventional (6% and 3%).
You can add these costs to the purchase price 106K if FHA or 103K if conventional.

If the house appraises for 106K or 103K, you'll get a mortgage.
If not, you won't get a mortgage.

If you mean to offer 100K (an example), and have the seller pay for your closing costs on top of that - you could get rejected, you could get a counter or your offer could get accepted. You won't know until you try.

However, you got to remember that both the seller and the buyer have to agree on terms/price.
So, if it's a buyer's market - it's worth trying what you posted (within market price range).
However, if you have a seller's market, and you really like the property - make an offer that will be more attractive to the seller. Usually, it is where the seller nets more in seller proceeds (either no closing costs or higher purchase price with closing costs paid out of it).

It also helps to have a good negotiator/agent on your side.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes Thank Flag Link Wed May 9, 2012
thank you for your help.
Flag Thu May 10, 2012
Would you want someone else to pay YOUR lawyer? I wouldn't. I'd want his allegiance focused on me, not on who is paying him.

That said, you can always make an offer however you want. And the seller can always refuse or counter if they don't like what you offered.
0 votes Thank Flag Link Wed May 9, 2012
thank you for your help.
Flag Thu May 10, 2012
LISTING PRICE
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.

Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”

Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)

Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.

Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
0 votes Thank Flag Link Wed May 9, 2012
thank you for your help.
Flag Thu May 10, 2012
Yes you can offer less and include your closing costs...but don't be surprised if your offer is rejected. Asking for closing costs is risky. Seller's expect to get the most from their sale and sometimes don't see the good in countering such an offer. I suggest you offer what the seller is asking and include closing costs, that way it might be a win-win for you both.

Good luck!
0 votes Thank Flag Link Wed May 9, 2012
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