is it to much to ask seller to pay all closing costs?

Asked by Gregp725, Marlborough, MA Sun Aug 7, 2011

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Louis Wolfs…, Agent, Needham, MA
Sun Aug 7, 2011
There are limits that lenders will allow. That said, I guess it also depends on how desirable the home is, how bad you want it and is there competition for it.
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Christine Mo…, Agent, Wilbraham, MA
Sun Aug 7, 2011
Anymore than 10,000 and it starts to seem like maybe you can't afford the home. It is nicer not have to pay out of pocket especially if you are putting down 20 percent already. Sellers do get a little miffed though. I have had seller refuse to pay closing costs.
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Michelle Lew…, Agent, East Providence, RI
Sun Aug 7, 2011
I usually recommend that my Buyers add the amount of "seller concessions" onto the price they are willing to pay for the property. As stated below, there might be some limitations to what can be paid towards close so I would verify with your lender before making any requests.
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Richard Shap…, , Framingham, MA
Sun Aug 7, 2011
No it's not too much to ask. Ask up front with your offer. 3-4k will cover typical closing costs with title insurance. 5-6k wil cover cc and possibly all your escrows. Contact me for a detailed list. Good luck.
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John Savigna…, Agent, Hopkinton, MA
Sun Aug 7, 2011
there is a limit to sellers contributions to closing costs set by your type of loan. ask your lender what the limit is and then what your closing costs will be based on anticipated purchase price. then ask for the max in your offer.
Best,
John
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Sherri Way, Agent, Framingham, MA
Sun Aug 7, 2011
I agree that is it really a way for you to roll the closing costs into the mortgage. It is called seller's concessions, but as long as the seller gets his/her net price (sale price - concessions), you should be ok. That said, you should check with the bank you are using to finance your mortgage. In some cases, they will dictate the percentage of the sellers concessions. Some banks will only let the sellers do 3% of the sales price. Others might let you do more.
Web Reference:  http://www.sherriway.com
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allan erps,A…, Agent, Pearl River, NY
Sun Aug 7, 2011
Very seldom done in these parts. Mostly a Sellers Concession here is really raising the price of the home(must appraise) by 3-6% so that the Buyer can cover their closing costs. Example $300,000 home with 3% Sellers concession, shows as $309,000 purchase with a credit at closing of $9,000 to be used for the Buyers closing costs.
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Ron Thomas, Agent, Fresno, CA
Sun Aug 7, 2011
It may be a BUYER's MARKET but you may be pushing too hard:
You have to figure that many Sellers are strapped for cash too, and have little or no equity in the house.
Put yourself in their shoes.
They say, you can ask, but....
It may be a deal breaker.

Good luck and may God bless
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Joyce Lin, Agent, Leominster, MA
Sun Aug 7, 2011
In MA, when there are Seller paid Closing Costs, they're being rolled into your loan and credited back to you by the Seller.

So, as long as the Seller is getting the price they want, they should be ok with crediting you back the Closing Costs.

Example, offering $110,000.00 for the property with a $4,000.00 credit towards Buyer's pre-paids and Closing Costs at Closing and not otherwise, means the Seller is actually getting $106,000.00 for the property (minus their own Closing Costs & Commission).

Your Loan Officer and/or Buyer Agent usually explains this to you...

j
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Sally Grenier, Agent, Boulder, CO
Sun Aug 7, 2011
Depends on how much your closing costs are. You can always ask, and they can always say yes, no or agree to pay a portion.

If buyers have limited funds, I typically suggested buyers ask for up to 3% of the purchase price to be paid by seller for buyer's closing costs (called "seller's concessions"). But usually the seller's agent wants to keep it limited to a specific dollar amount (like $2500).

Make sure you have a good Realtor working for you as a buyer's agent. If you are asking for closing costs, you may want to increase the purchase price, just to make the offer more attractive. Good luck!
Web Reference:  http://www.sallygrenier.com
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