Home Buying in 32220>Question Details

Patti Goddard, Both Buyer and Seller in 32210

Is it unreasonable to ask a seller to pay all closing costs?

Asked by Patti Goddard, 32210 Thu Jul 10, 2008

Help the community by answering this question:


Plain and simple, with the right kind of offer asking for closing cost from the seller is just fine. Asking does not mean that you will get it, but when making an offer ask for anything on the front side and then negotiate. Good luck! Jack Vance, 904-504-1215
1 vote Thank Flag Link Mon Aug 4, 2008
Look at the logistics about what your asking the seller to do for the buyer. (and think about it when you go tosell your own property). The contribution of, let say, $5,000 can either increase the amount the buyer pays (in order for the seller to receive "x" amount), this will increase the mtge. amount for the buyer, yet mor eimportant, this could push the appraise dvalue above what the property is worth!? Of which, the seller can make a decision not to sell the property when asked to take less than the P&S states. Most bank appraisers are cautious for good reason. If the property doesn't appraise your transaction could terminate. And further more, sellers are not "stupid" when they increase the value of the P&S and participate, that means they could have received an additional $5,000 for their property from someone who didn't request the $5,000 sellers participation!
1 vote Thank Flag Link Mon Jul 21, 2008
hi there,

from a buyer's point of view it's always okay to ask the seller to pay some or all of the closing costs.

HOWEVER, and this is so important in this market... Seller's are often times pushed right up against the wall trying to sell.

try to keep in mind that the seller is trying to sell without going into debt. even though this is YOUR market as a buyer, as trite as this sounds, sellers are people just like you, so ask, and be kind.

most sellers will negotiate. and a really good mortgage person with first time buyer's experience, can guide you through often hooking you up with some nice programs.

remember, the seller wants to sell, and will generally work with you as the buyer.

be prepared to keep the offer conversation going until you are happy and the seller is happy.

that's the best kind of transaction!

katherine davidson, Watson Realty Corp.
1 vote Thank Flag Link Sun Jul 13, 2008
It is not unreasonable to ask for the seller to pay closing costs at all. Because it is a buyers market, you have a lot more leverage than you would in other real estate markets. I have attached a blog post about closing costs for further education.
1 vote Thank Flag Link Sat Jul 12, 2008
When attempting to get the best deal when purchasing a home, it is generally not unreasonable to ask the seller to pay for anything. Remember the initial offer is only the starting place. You and your REALTOR should have a game plan when submitting an offer. This should include your initial offer with everything you want, an idea of what you can do without, and definitely an idea of what you have to have. This will give you a starting place, and from this you should be able to get a feel for the position of the seller. From there you can better determine how to continue the negotiations. The key is to have a game plan before submitting an initial offer, knowing in advance what you must have, and what you can do without. Always feel the seller out first, because if you never ask, you will never know if it is something they are willing to do.
1 vote Thank Flag Link Fri Jul 11, 2008
Margaret, it is not unreasonable to ask for the closing cost to be paid by the seller. You would need to confirm with your mortgage co. to find out how much they will allow depending on what product you are working with. Assuming that you are working with a Realtor their job is to negotiate for you, so put your thoughts and offers in their hands and see what happens. Good luck! Jack Vance
1 vote Thank Flag Link Fri Jul 11, 2008

Anything is possible but it depends on the area market and amount of the offer. If you come in way below the asking price, its doubtful your offer will be received with open arms.

But, "nothing ventured, nothing gained."

Good luck,

The "Eckler Team"
1 vote Thank Flag Link Fri Jul 11, 2008
Although not a direct answer, that was a great answer Phillip.
0 votes Thank Flag Link Mon Jul 21, 2008
Asking for the seller to pay your closing cost is never unresonable, however you must be able to handle rejection well if your combination of concessions and price reductions are too rigid. The secrets to successful negotiations lies in being the first to submit the terms, and submitting those terms in such a way that they are more than what you want but less than what would be considered insulting. Do your homework well on comparable values and you should be able to come up with a winning offer.

Always, an alternative to seeking seller concessions is to utilize Florida bond money if you are a first time homebuyer.
Web Reference: http://www.zillow.com
0 votes Thank Flag Link Fri Jul 11, 2008
Hi Margaret,
Closing costs are certainly negotiable, but as Gwen stated if it is a bank owned property, some banks will pay some closing costs, it is just depending on the bank itself (they vary so much with allowances).
Best of luck
Web Reference: http://www.torilawson.com
0 votes Thank Flag Link Fri Jul 11, 2008
When asking for closing costs, be mindful of whether the home is a short sale, pre-foreclosure or bank owned. Although the seller might initially agree to pay closing costs in a short sale or pre-foreclosure, it is really in the seller's lenders control because they decide the final selling price for the house, and money paid out. In my experience, sellers closing costs are often not allowed by the bank as is true for many bank owned properties.
Web Reference: http://www.GwenCampbell.com
0 votes Thank Flag Link Fri Jul 11, 2008
Hi I am a realtor in Memphis, TN. It is very common for the seller to pay the buyer's closing costs and prepays in this area. However, it is considered unreasonable to ask the seller to pay the closing costs, prepays and come off the price significantly if the house is priced correctly. Although this happens it is not the common sale. In our area houses that are priced correctly generally sell within 3% of asking price. Closing costs and prepays generally are about 3% of selling price. So the seller in this area is generally expecting and either/or situation of paying closing costs or coming off the price about 3%. If you have any other questions, my website is joanketchen.com
0 votes Thank Flag Link Fri Jul 11, 2008

The answer to your question is: No it is not unreasonable for a seller to pay all Buyer's closing cost including prepaid items.

I am a Realtor In Jacksonville, your zip code is within my service area. Many transactions include the seller paying "all Buyer's closing cost and prepaid items up to $xxxx not to exceed actual"

All of the answers by the Realtors answering before me are true for property in your zip code. Many offers on behalf of individuals qualifying and participating in down payment assistance programs also include the seller making a contribution to the program in the amout of 3% to be used towards the buyer's down payment.

Lowball offers including the term or condition of paying the Buyer's closing cost are not received well. If the home is priced at or below the current market value you will have a better chance of getting an accpeted offer if your offer is near or close to fair market value when asking for the seller's contribution towards Buyer closing cost.

Your Realtor can advise you.
Web Reference: http://www.cathysloan.com
0 votes Thank Flag Link Fri Jul 11, 2008
It is not unreasonable at all....it's all part of the negotiation.
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Thu Jul 10, 2008
Cindi Hagley,…, Real Estate Pro in San Ramon, CA
Everything is negotiable when you buy or sell real estate. Whether a seller will pay all closing costs certainly depend on the market condition, how anxious they are to sell, the offering price, the customary practices in the area, how much equity he has in the house, etc.

In the sellers market as we had a couple years ago with multiple offers, asking seller to pay closing costs was unheard of. However, being a buyers market, seller paying closing costs is certainly something a buyer can ask the seller to do.

0 votes Thank Flag Link Thu Jul 10, 2008
Sylvia Barry,…, Real Estate Pro in Marin County, CA
In areas that people are dumping real estate, it is more likely than not you can negotiate for the seller to pay closing costs. This also depends on how much they want to sell it also, but it is not unreasonable. Some people even openly offer seller pays closing costs.

*part of the Trulian team ^^
0 votes Thank Flag Link Thu Jul 10, 2008
It all depends on the bottom line price for the seller, if asking the seller to pay all closing costs brings them well below what would be a good fair value for the property, then yes. Also, there is the option if having the seller pay all closing costs brings them well below a good fair value you can increase the purchase price a bit to make a gain/gain for both parties. With all credits now, make sure that the property will appraise as banks are looking at those things very closely in this market.
Web Reference: http://www.mainchicago.com
0 votes Thank Flag Link Thu Jul 10, 2008
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