Home Buying in 60657>Question Details

Donnie, Home Buyer in 60657

as a buyer, what related costs will i be responsible for and what does the seller have to cover? I am trying

Asked by Donnie, 60657 Wed Jul 9, 2008

to buy a condo in lincoln park and am now being told buy my agent that he might need more money. It was my understanding originally that i needed 10% down, closing costs are $1500.00 and include attorey fees. upon first home inspection the inspector noted hvac problems and said the furnace should be repaired or repaced as it is 2 years beyond it's 25 year life. the seller said they repaired it but have no receipt of repair, supposedly having done the repair himself. This is becoming very cofusing and now my realtor is not being forthcoming to my questions, ainly who should be payingfor what. All i want t know is what am i responsible for a what is the seller responsible for as $240,000 is a considerable investment and feel i should b treated accordingly. Any help woudbe greatly appreciated.

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Donnie, there are two components to your question. First, repairs are negotiable so the seller may or may not have to repair the HVAC (assuming it no longer works). If it works, it is not customary for the seller to fix it, but of course you could walk.
Closing costs are the second part. The lender fees will be close to $1500, but then you have to escrow taxes and prepay interest, which could be much more. Then you have attorney fees and title maybe another 1500. Finally, do not forget the Chicago transfer stamp which is $3.75 per every $500 in purchase price. So most deals require about $5000 in total costs plus down payment, which may be reduced by seller tax credit for previous and current tax years. Long and short, I doubt you would be ok with $1500 but of course your lender and attorney (not your realtor) should provide exacts or close. Good luck!
Web Reference: http://www.1sthomegroup.com
0 votes Thank Flag Link Thu Jul 10, 2008
Donnie:

I agree with Mike about the furnace. My mom's house has a forced air furnace well over 25 years old. Recenthly they replaced the fan motor and it continues operating just fine.

Your agent isn't likely to have the best answers for closing costs. Your lender should have provided you with a Good Faith Estimate (GFE). In today's market it's not unusual to ask the seller to help pay them. So long as they net at or near the same amount, there shouldn't be much objection.

You can reduce/eliminate closing costs by paying a higher interest rate. An additional 1/8% higher rate may net a credit against closing costs equal to approx ½% of the loan amount. An additional 3/4-percent in interest might eliminate closing costs of up to 3%.

Use my free online prequal calculator to estimat the amount you are likely to qualify for then submit your data for a no cost pre-approval. Visit my website today and enter to win $1,000.00 in my monthly drawing without cost or obligation…

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0 votes Thank Flag Link Thu Jul 10, 2008
Donnie,

Contact your real estate attorney ASAP they can and will take care of everything for you!
Web Reference: http://www.markroncone.com
0 votes Thank Flag Link Wed Jul 9, 2008
I have a problem with your inspector telling you that the furnace needs to be replaced because it is 2 years past its 25-year lifespan. Furnaces do not have a pre-defined lifespan. If it is in overall good condition and working properly then the proper advice is that it is older and you should start budgeting for a new furnace. More to your question, the seller isn't responsible for repairing anything found on a home inspection. You can, of course, try to negotiate any repairs with the seller, but if they refuse to make any repairs then you have to make a decision to accept their decision or to walk away. -Inspector Mike Savage
0 votes Thank Flag Link Wed Jul 9, 2008
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