Home Buying in McLean>Question Details

Sara, Home Buyer in McLean, VA

What percentage of sales would you say that sellers are paying all or part of the closing costs? In this case, offer price was list price

Asked by Sara, McLean, VA Wed May 26, 2010

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I'm seeing around 40% of offers coming in with seller subsidy requests. However, if a buyer is coming in at list, this percentage tends to be higher. The key is what is the price of the house. There are certain price ranges that dictate a buyer's market and others a seller's market. In certain areas I've seen homes under $700K geting multiple offers in which case requesting subsidies may not win you the contract. Areas like McLean the division line between buyers market and sellers market is closer to $1.2 million.
Web Reference: http://www.myagentpaul.com
0 votes Thank Flag Link Thu Oct 28, 2010
Sara,

Good question. There are some good answers below..but your agent should give you the advice you need. I would first run the comps..because maybe your list price offer is still below market...or it could be 20% above market. This is the first step..2nd the amount of closing assistance depends on YOUR loan and YOUR needs. FHA will allow 6% of the sales price. This would be a foolish amount for most people to ask for because the closing costs here in N. VA are not that much...so any unused money reverts back to the seller..unless properly structured. If you have a conventional loan of less that 90% then the cap is 3%. Above the 90% seller contribution can be up to 6%...this sometimes can be useful for higher tax bracket individuals.

So to ask what percentage of sales that sellers are paying closing costs..well really it depends on price range..asking price..and a myriad of other factors. Start with the CMA and work from there. Good luck to you!

Kind Regards,

Erik J. Weisskopf, ABR,CDPE,CRS,GRI
Erik@AskMeAboutHomes.com
0 votes Thank Flag Link Thu May 27, 2010
Sara:
It depends on the total offer; terms, price and conditions. Some agents say they "usually ask" for a percent. OK. Issue is if a low ball - the concessions will probably between none and pretty low. Otherwise check the area and perhaps neighborhood comps with your buyers agent & see what is happening in your market area.
0 votes Thank Flag Link Thu May 27, 2010
It really depends on the buyers in the particular market. According to what these agents say, they are seeing it. My primary market $400,000 and up homes in NY, and I am finding very few seller's concessions.
0 votes Thank Flag Link Wed May 26, 2010
I usually go for 3% of the sale price.
0 votes Thank Flag Link Wed May 26, 2010
Sara-I don't think there is a percentage that would matter. The agent representing you in the transaction should have walked you through the appropriate scenarios for the offer you were making and help you make an informed decision as to the best terms and conditions on the property you wanted to buy. The FHA and VA have maximum limits on the amount of seller subsidy allowed which if you used one of these loans your lender can explain to you.
0 votes Thank Flag Link Wed May 26, 2010
Sara:

You are in a local market nearby to me. I haven't seen an exact percentage of sales that sellers offer closing help. However, in my experience the majority of the transactions that I have been involved in the last year on the buying and selling side have given contribution.

I think giving a little bit of help towards the buyers closing costs, goes a long way. This is especially true in the situation you are describing where the buyers are giving the asking price.

There are a lot of circumstances though such as date on market, how hot the property is in the area, etc that may dictate the seller to refuse to give closing help.

If they come back with a counter offer without the closing help, perhaps it might be something to think about offering a higher price and then asking for the difference in closing help.

Hope that helps you out a little bit.

Regards,

Stan Barsch
Long & Foster Realtors
Downtown Silver Spring
0 votes Thank Flag Link Wed May 26, 2010
It depends on your deal, loan package and the home's market value. In some cases 0.
The most I have seen these days has been around $11,000.

Your agent should know what to ask for.

Best Regards,
Jay
Web Reference: http://TalleyHurstHomes.com
0 votes Thank Flag Link Wed May 26, 2010
It depends on listing price and what type of loan buyer will be using. FHA max closing contribution is 6% and conventional is usually 3% and investment is usually 2%. It depends on loan type and the lender. My buyers usually asked for 5~6% and we will use it toward closing, point and any other items that can be paid by seller's contribution. If there's multiple offers on the property you will most likely to ask for lower closing contribution and increase offer price to have your contract more competitive. It's important to work with Realtor whose familiar with current market.
Web Reference: http://www.home1on1.com
0 votes Thank Flag Link Wed May 26, 2010
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