In NY, closng costs are higher than they are anywhere else, especially in the boros where mortgage tax is higher. It is more likely that you will not be able to get the property to appraise for enough to cover all your closing costs, whch are most likely to be more than 3%. dependng on your down payment, if you are buying an under-valued house, you could get up to a 6% seller's concession.
It always helps to speak to the Realtor you're dealing with, attorney and/or mortgage banker. Helps to go through these details with the Real Estate professionals you're working with.
Should you need a mortgage banker, I'm always availabe!
Sterling National Bank
Licensed Real Estate Broker & Brokerage
"The Upper West Side's Buyer Broker"
Columbus Avenue, New York, NY 10023
Office: 212 721-3301 Email: email@example.com
Yes, you can always ask, the worst thing that can happen is that the seller will refuse to do so. The only reasons why a seller may refuse to do so would be if a) the amount you are offering is not enough for them or b) they are concerned about the house appraising for the sales price (below I will explain why this is a concern).
Basically what you would be asking for is referred to as a "seller's concession." When this is done the seller gives the buyer back money at the closing (up to 6% if you are qualified). The buyer cannot take this money home with them, it is used at the closing table to pay the closing costs.
The seller's concession is helpful to buyers who are low on capital and only have enough money for the down payment. Ultimately a seller's concession is a means by which a buyer can finances the majority of their closing costs. The reason why a home seller may shy away from the seller's concession idea is because of bank appraisal concerns. Anytime a buyer goes for a mortgage, the bank sends an appraiser into the house to make sure the home is worth the price the purchaser is paying. If the appraised value comes in short of the sales price, the bank will deny the mortgage. Hence the seller may worry that this could become a problem due to the inflated sales price which add no monetary value to the seller.
If you give a good enough offer, the sellers usually WILL give the concession and take the risk. It never hurts to ask, especially if you need it to be able to buy the home in the first place. If you do not absolutely need the seller's concession, it would be better for you not to do it because in the end you will be borrowing less and saving money on a monthly basis.
If you want to discuss this further or have additional questions, feel free to call me any time. Good luck!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
As far as short sales go (if you see a lot of these in your local market place), I have seen the banks lean towards only wanting to give 1% to the buyer, however I did just have one close where the buyers got the full 3%.
Just be sure you have a back-up plan in case the seller does not approve of giving you all of your closing costs.
Best of luck to you!
Your Castle Real Estate
p: (720) 988-5952
But remember, the seller wants to walk away with XX dollars which means that you may have to pay a higher sales price.
have a professional real estate agent and mortgage broker work the numbers and the contracts for you.
If you need recommendations, I will be happy to help.