Home Buying in 77049>Question Details

Douglas, Home Buyer in 77049

If builder offers free upgrades, where is this transaction reflected on the closing statement?

Asked by Douglas, 77049 Mon May 17, 2010

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9
Hi Douglas,

It doesn't show up on the closing statement. It is rolled into the price of the house on the New Home Contract. Some builders will let you use a portion of the upgrade money to lower the price of the house, but usually a certain amount of the money goes to actual upgrades. Use an agent even for a New Home. The agent can usually negotiate the price of the house and may get some extra upgrades thrown in. It doesn't cost you anything since the builder pays the agent her commission. The agent would be there to protect you. If you need any help, feel free to contact me.

Good luck,
Debbie
1 vote Thank Flag Link Mon May 17, 2010
Hi, Douglas. Very good on you to be paying such close attention to one of the most misunderstood (and important!) docs regarding closing. The closing statement is used only going to determine how the terms of the actual loan are to be paid....if the builder was offering closing cost assistance, it would show up on the statement.

If you have previously negotiated free upgrades, this should be part of the original contract and enforceable. The price of the home that is listed on the top of the HUD/Settlement statement (line item 101) will reflect the price of the home. Make sure it is the price negotiated on Contract and you are set!

Best to you and ALWAYS get a home inspection before you close!
0 votes Thank Flag Link Tue May 18, 2010
Douglas,

I'm guessing it won't be on the closing statement, but only on the purchase contract.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Mon May 17, 2010
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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Hi there, especially for new construction, if you do plan to use an agent to represent you which I agree makes good sense, be sure to bring have them accompany you the first time you visit the site and register. If you do, your relationship with the agent should be honored, if not, likely not.

Good luck - load up those upgrades and good luck on your close.

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Mon May 17, 2010
It should be written in the additional terms on your contract with the dollar amount.
0 votes Thank Flag Link Mon May 17, 2010
Your buyers agent is the professional answer your questions due to executed sales contract all amendments. It would NOT have anything to do with closing statement

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Mon May 17, 2010
It's not going to be listed on the HUD. It should however be in your sales contract with the builder. For help guiding you through the home-buying maze call eNewHomes.com. Our service is FREE. Check us out online at http://www.eNewHomes.com

Good luck!
Web Reference: http://www.enewhomes.com/
0 votes Thank Flag Link Mon May 17, 2010
Joseph is correct. I am assuming that you are talking about construction upgrades, not closing costs or something like that....


Jackie
0 votes Thank Flag Link Mon May 17, 2010
It will likely not show up on the closing docs. It will show up in the purchase contract as part of the purchase price. The closing docs will only show the purchase price.
0 votes Thank Flag Link Mon May 17, 2010
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