Property Q&A in Tracy>Question Details

Mrsmariagrif…, Home Buyer in Tracy, CA

How do we know who would pay the closing cost.?

Asked by Mrsmariagriffin, Tracy, CA Thu Jul 14, 2011

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It's negotiable. Simply sit down with your Realtor and discuss this topic. Make sure to let us all know the results of your conversation. There is no doubt you'll have more questions.

Have a great day,

Rocky G.H. Hawrysz
Prudential California Realty
(209) 444-6610 Direct
(209) 433-2000 Fax
License No. 01468373
0 votes Thank Flag Link Sun Jul 31, 2011
It really depends on the agreed upon terms of the contract. Most counties have what is called "normal pro-rations for the county". However, it really negotiable by and between the parties, except to the extent that title insurance may be the choice of buyer if buyer has paid for it. Check with a local Realtor or a local title company to find out what is normal for your county.
0 votes Thank Flag Link Fri Jul 15, 2011
It's really up to you. If you are buying the home from the bank you can ask for closing costs to be paid unless the price that you offer is way under the asking price. The bank has a bottom line like everything else that is negoitable. Good luck with the purchase.
0 votes Thank Flag Link Thu Jul 14, 2011
With the market having so many variables an agent can help you navigate what is the best way to go for you. Depending what type of loan you get, what type of sale the property is and the condition of property can all create variables. It is best to consult with an agent so we can direct you in the direction that best fits your needs and wants. It is a confusing time out there for buyers and we are here to make the process as simple as possible for you. This practuliar property has been taken off the market and was a short sale. May not fit your needs if your looking for closing costs. Please feel free to contact me and I can help explain the details and help you figure out what best suits your needs.

209 914-7985
0 votes Thank Flag Link Thu Jul 14, 2011
Who pays the closing cost is negotiable. It can be divided between the buyer and the seller or can be paid completely by either party. What is customary in the Central Valley is that the buyer usually pays for the inspections i.e. roof, termite, home inspection, etc. The title fees for escrow and the owne'rs title policy is split 50/50 between the buyer and the seller. The transfer tax and the natural hazard disclosure are usually paid for by the seller. If the lender requires a title policy then the buyer usually pays for that. The buyer also pays for the loan fees i.e. appraisal, origination fees, points, etc.

Once again, this is all negotiable. Many times when a buyer is short on cash the buyer can bidder higher for a property and then ask for the seller to pay closing cost. This happens a lot with FHA financing. Short sales are not good candidates for seller paid closing cost. The short sale bank will usually veto any seller paid closing cost.
0 votes Thank Flag Link Thu Jul 14, 2011
It depends on how the contract is written. The contract will spell out who pays for what.

Having said that, there are some "typical" pro-rations for who pays what depending on the area. In Tracy, the buyer and seller split some title and escrow fees 50/50, others are buyer pay (loan fees, points, etc) and others are seller pay (county transfer tax, commissions, etc).

Ask your agent to give you a buyer net sheet so you can see what you can expect to pay on an individual transaction. I'm close if you need further assistance.

Web Reference:
0 votes Thank Flag Link Thu Jul 14, 2011
Closing costs are typically split on the basis of whatever is customary in your county/area. Check with your agent or you can call a title company and ask them
0 votes Thank Flag Link Thu Jul 14, 2011
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