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.
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,
Beachfront Realty, Inc.
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.
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 â€œchasing the curveâ€) and Buyers will be asking the question; â€œWhatâ€™s wrong with that house?â€ and â€œWhy has it been on the Market so long?â€
Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; â€œArenâ€™t you obligated to sell at this price if someone offers it?â€ 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.