Home Buying in Hialeah>Question Details

Yani, Home Buyer in 33010

It is the seller supposed to contribute with part of the closing cost ?

Asked by Yani, 33010 Fri Nov 12, 2010

Our agent told us that the seller is not obligated to contribute with part of the closings.We are going to pay 205000 for the house.Is this correct?thank you

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Obligated and willing are two different things. Sellers are not obligated to pay for a buyer’s closing costs. You can request that the seller help you by paying part or all of your closing costs. That is a just part of the price/terms that you include in the offer that you write. Your seller may be willing to pay closing costs based on the overall attractiveness of your offer. Payment of closing cost by a seller is one of the parts of a real estate purchase that are negotiable.
0 votes Thank Flag Link Fri Nov 12, 2010
Yani: The seller is most likely paying for your Realtors Commission, and they are also most likely selling the home at a lower price than the expected. Remember that especially if you are buying a bank owned home, the bank is selling it at a loss. They are already not getting what they originally owed. In our current market across the U.S. banks and sellers alike are taking huge losses on Real Estate. Even though you feel your closing costs should be paid. sellers normally DO NOT pay them when they are already taking a loss on their property.

Look at the benefits of purchasing property that is already discounted below the original mortgage amount!

0 votes Thank Flag Link Fri Nov 12, 2010
All of the answers below are correct. The seller is under no obligation to help assist with any buyers closing cost. I think some buyers somtimes forget that the seller has his/her own SELLERS closing costs to get the deal done which are in MOSTcases much more $$ then the buyers closing costs.

If you got a good deal on the home take care of your own closing costs. Trust me a year from now you'll forget all about it as you are enjoying your new home.. Good luck

Jason Stevens., GRI, ABR
0 votes Thank Flag Link Fri Nov 12, 2010
Though the seller is not obligated to contribute, many of them do. If it is not negotiated in the contract, ask you agent to see what you can do.
Good Luck!
0 votes Thank Flag Link Fri Nov 12, 2010
Your agent is right, the seller is not required but in many cases sellers will contribute to the closing cost. Talk to your agent have them look over the contract and advise you.
Good luck
Ainsley Daux
0 votes Thank Flag Link Fri Nov 12, 2010
There is no obligation on behalf of the seller to pay any of your closing costs unless you negotiated it at the time of your offer. Most sellers for whatever reason also seem offended when a buyer is asking them to pay closing cost you're almost better taking it off the top and rolling your closing costs in.
0 votes Thank Flag Link Fri Nov 12, 2010
Your agent is right. It is up to the seller's sole discretion to decide whether to contribute with buyer's closing costs or not .
0 votes Thank Flag Link Fri Nov 12, 2010
Yani, the part of a seller's concession that is most important is that the house has to appraise for the higher price. Normally when you make your offer, you let them know up-front that your offer is with the seller paying closing costs. If they will not cover any of the closing costs, and you don't have enough on your own, you will not be able to buy the house. On the other hand, if they agree to pay something towards closing costs out of that $205,000, the house has to appraise for $205,000. When market prices are dropping, this is sometimes difficult.
One more thing, in Florida, in some counties, the seller orders and pays for title. You will have to check with someone locally to see if that is true in Dade County, as I have not done a loan in FL in quite a number of years.
0 votes Thank Flag Link Fri Nov 12, 2010
There is no obligation - but it is common in this market. The closing costs can be negotiated via contract.

Have your REALTOR advise you on the best way to proceed.

You DO have a Realtor - right? If not - get one to represent your interests.

Good Luck!

Gerry Dunn
Associate Broker
Serving Maryland, D.C. and Northern Virginia
0 votes Thank Flag Link Fri Nov 12, 2010
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