Home Buying in Los Angeles>Question Details

Lisa, Home Buyer in California

Should the closing cost be added to the offering price?

Asked by Lisa, California Mon Dec 29, 2008

I want to offer $250,000. on an reo property. I want to ask for $5000.00 towards my closing cost. Should the purchase price on the agreement that I sign be $255,000.

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If what you want to actually pay the bank for the house is $250,000; but you need to finance the closing cost, then the offer should be $255,000 with $5,000 back towards closing costs.

Other factors? check with your Realtor. Once you put something on the contract and accepted, it will be difficult to change/correct.

Best and Happy New Year!
Sylvia Barry
Marin Realtor
0 votes Thank Flag Link Wed Dec 31, 2008
Sylvia Barry,…, Real Estate Pro in Marin, CA
MVP'08
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No, you would ask for the closing costs in the offer. This doesn't change the purchase price offered but will be credited to you in escrow. I hope you are using your own agent as he/she should explain this to you.
1 vote Thank Flag Link Mon Dec 29, 2008
Hi Lisa,

The way I would handle your offer is I would write an offer for $250K and ask the seller to credit you as the buyer 3% of purchase price for non-recurring and recurring closing costs. This ensures you get all the money.

Please consult with your real estate agent for professional advice. You can view available bank owned homes here in my website: http://www.bankowned.la
0 votes Thank Flag Link Tue Jan 13, 2009
Ask that bank to pay for the closing costs. What's the worst thing that they could do to you? They could reject your offer, and not counter. What's the best thing they could do to you? Accept your offer and terms as-is.

Present your offer (by yourself or through a realtor), and let the bank decide how they'd like to respond.
0 votes Thank Flag Link Tue Dec 30, 2008
There are a lot of factors involved in deciding, first of all your agent should find out if there are more offers and more or less what they are asking, next your agent should talk to the listing agent or their assistants to try and get an idea of what the bank wants. If there are no offers then ask for the closing cost, but if the property is getting a lot of activity add the closing cost to the purchase.
0 votes Thank Flag Link Tue Dec 30, 2008
Well lisa that depends, if you are asking for closing costs it can be done both ways. If the price of the home is $250,000 and you want to have a good chance at getting the home by offering $250,000 then I would add the closing costs to the 250 offer. Remember when the listing agent representing the sellers presents your offer he/she will inform the seller how much they will net. If you are offering 250 but asking for the 5000 then in reality you are only offering 245.
Web Reference: http://BENNYCHAVEZ.COM
0 votes Thank Flag Link Mon Dec 29, 2008
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