I have a cash offer on my rental home and would like your guidance on closing fees. Is it reasonable to ask for all closing costs to be split 50/50?

Asked by Lh, Needville, TX Sat Aug 3, 2013

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7
Darrick Gill…, Agent, Englewood, CO
Fri Sep 13, 2013
Hi Emily,
All closing costs are negotiable on a CASH deal. So to ask a split is reasonable... However, the Title closing fee is typically split 50/50. Title Insurance is usually paid by the Seller. Filing and Doc fees are usually not very expensive.

Thanks,
1 vote
Robert McGui…, Agent, Denver, CO
Sat Aug 3, 2013
LH,

Closing costs are negotiable. If you have a Buyer's Agent I am sure they explained this to you. A lot depends on the strength of the offer and the effects of your bottom line and net proceeds. If you do not have a Buyer's Agent you will have more questions along the way and this will be the easiest one to answer. This need for 'guidance' is just one reason why you need to have professional representation. It is well worth it.

Robert McGuire ASR
Broker/Consultant
Your Castle Real Estate
Direct - 303-669-1246
http://about.me/robertmcguire33
1 vote
May Jackson, Agent, Englewood, CO
Sat Aug 3, 2013
Sellers have closing costs, so do buyers. Most buyers will ask for some form of closing cost assistance. If you are working with a Realtor, they would be able guide you the best. If you are not working with a CO Realtor, I would suggest hiring one local to the home, who can use the data on the local MLS to find the best price for the home right now. Web sites don't always have accurate information and can be off by Thousands of dollars. If you are accepting an offer that is well below market value, your Realtor might suggest this is appropriate, if the Cash offer is at Market Value, then it may or may not be. If the Cash offer is well over Market Value then asking to share closing costs may not be appropriate. The only way to fairly evaluate this would be to know the value of the home and the offer. I'm happy to provide you with a Comparable Market Analysis (CMA) using the Multiple Listing Service and one using National Association of Realtors, Property Resource to provide a starting point, Contact me at may@mayjacksrealty.com
1 vote
Lh, Home Buyer, Needville, TX
Sun Sep 15, 2013
Thanks to everyone even a couple of the non-supportive ones. Deal closed went smooth...Maybe I missed my calling as a RS agent.
0 votes
Terri Vellios, Agent, Campbell, CA
Sat Aug 3, 2013
Each city has what is standard and typical splits. You can ask your agent or title company for your area standards. With that everything is negotiable. If you have an offer accepted you should read the contract. If you have not accepted an offer, read the contract.

The market condition will also affect what a buyer is willing to accept in the contract.

All the best to you.
Web Reference:  http://www.TerriVellios.com
0 votes
Shannon Marie…, Agent, Aurora, CO
Sat Aug 3, 2013
In this market, it isn't unusual to see a trend of splitting closing costs. I would make sure that you have your negotiation for splitting cost at closing written in very clear terms.
0 votes
Sally Grenier, Agent, Boulder, CO
Sat Aug 3, 2013
In real estate, everything is negotiable. May makes a good point. Both sides have closing costs, and it depends on what the offer is, compared to fair market value.

Plus...when you receive a Contract to Buy, it specifies who pays for what. So...what does the contract say?? Or is this a verbal offer??

It's customary for the seller to pay for the title insurance, but again, it's negotiable. Then for title fees, recording fees, etc. you can split 50/50 or specify who pays for what. If the buyer is getting an appraisal, then who pays for that? (even in cash deals the buyer may want an appraisal). This should be specified in the contract. Too many unknowns here to give you a clear cut answer.
0 votes
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