Home Buying in 11040>Question Details

TAOS, Home Buyer in New York, NY

Seller to pay Closing Costs ??

Asked by TAOS, New York, NY Tue Aug 12, 2008

I am interested in a home in Nassau Cty. Its been on the market for some time ( six months) and reduced about 15% from original asking already. I want to make an offer contingent on the seller (private - not a developer) paying my closings costs. Is it unheard of to ask for a seller to pay the closing?

Oh, I know I should have my own agent. We're working on it.

Any suggetsions on hwo to handle this or is there some other method that buyers use to close. -Thanks

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TAOS, if it's been on the market for six months, ask for exactly what you want. If the seller's listing agent is smart, they'll encourage negotiation if the sellers balk. Whether you request closing costs or a discount, it'a all the same to the seller- they'll review their bottom line, and if they don't like it, will counter with the help of a competent agent representing their best interest. At that point, the ball's in your court.
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1 vote Thank Flag Link Tue Aug 12, 2008
Go for it, Mortgage lenders are OK with seller concessions of up to 6% of the purchase price. The concession will greatly reduce the amount of money you will bring to closing so you may be able to offer a higher price for the house if the seller has a hard time with the concession.
0 votes Thank Flag Link Wed Aug 13, 2008
I just went threw this the house was on the market for 6 months I offered 285,000 and asked the seller to pay the closing cost. They said no and the house went to another person a day later. I just think I should of offered 275,000 and paid the closing cost myself.
0 votes Thank Flag Link Tue Aug 12, 2008
In NY, practice on a seller's concession is, for example, if you had a $100,000 agreed purchase price, you might mortgage $103,000 for the purchase price, if the property appraises higher than the $100,000 selling price, and the seller pays up to $3,000 closing costs and then takes it as a tax write-off.

In other states, sellers sometimes actually pay the closing costs as a negotiated deal.

Would they do that in NY? How motivated are they to sell...it is like negotiating the price down. And yes, you really should have a Realtor negotiating this for you.
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0 votes Thank Flag Link Tue Aug 12, 2008
In many instances that is norm as long as the home can appraise for seller concessions added. It all rolls into your overall loan amount. Foreclosures, short sales banks will pay a certain % based on terms and conditions of contract
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0 votes Thank Flag Link Tue Aug 12, 2008
I would at least ask for 3% of the Purchase Price of the home.
0 votes Thank Flag Link Tue Aug 12, 2008
Thanks for your answer. It really does help.

Oh, I noticed a typo in my questions. I would ask for closing costs whe nI made my offer, not at the actual closing. Sorry for the confusion!
0 votes Thank Flag Link Tue Aug 12, 2008
No it is not unheard of to ask a seller to pay closing costs. It really depends on how long the seller has owned the property and how long that property has been on the market. If you are close enough to the asking price you should ask the selling broker whether or not the seller would consider paying closing costs out of the proceeds or, at the very least split it with you.

You might as well ask the seller now instead of just a few days before instead of waiting.

Yes you should have an agent help you in this process because more than likely, they have done it before.
0 votes Thank Flag Link Tue Aug 12, 2008
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