The $7,500 dollars is going to pay for the buyer's closing costs. For the seller in a scenario like this would have to pay tax stamp of $4.56 per thousand the property sells for and in this situation that would be roughly $1,094. Then you have the deed drafting. Those are the basic seller closing costs. All the best
Hi Kristen, speak to your lender regarding the specific closing costs applicable to you. There might be some items that need to be paid for in your particular situation that we're not aware of here, so he or she would be able to give you the most accurate info. Best of luck, Caroline
Seller closing costs are mostly selling commission and many smaller items. If a buyer is ASKING for a closing cost credit the amount can be anything they ask that their bank will approve, but just look at the net number. So a $245K price with $5K in closing costs will feel the same to you as a seller as the $240K. There is a very minimal effect on tax stamps, but we're talking like $15 or so...
Hi Kristen- $7500 would be too much in most cases with a conventional loan. Max would be $7200. But with FHA, you'd be OK.
Seller closing costs are very minimal. Most would be the 5% RE commission, if applicable. Other than that, very minor- likely less than $1000.
If you'd like more specific information on a deal, please let me know. Thanks, and good luck,