What % of closing cost does the seller usually pay?

Asked by kodybear, New York, NY Sun Jul 7, 2013

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Deborah Garv…, Mortgage Broker Or Lender, San Diego, CA
Mon Jul 8, 2013
Great responses below. As noted below, everything is negotiable. However, it is also important to be realistic...in the current market in, and around, San Diego I am seeing very little contribution from sellers over and above the 1/2 escrow, transfers tax, etc.

Inventory is still pretty limited and cash is still King and most agents I would with would caution a home buyer about being very aggressive in requesting seller contribution as it could diminish the chances of the contract being accepted.

Every situation is unique....but it is imperative to work with a real estate professional who can guide you through the process of negotiation AND that you trust to give you advice that will help you accomplish your goals.

NMLS #279125
1 vote
Sam Cong, Agent, San Diego, CA
Fri Nov 1, 2013
It is all Negotiable, 50/50 split is typical, but I would try to lower the sales price and get your own title and escrow company.
0 votes
Jeff Jenkel, Agent, San Diego, CA
Fri Nov 1, 2013
Generally closing cost are split 50/50 unless they have been negoiated otherwise in the contract. Depending on who gets to select the services (title and escrow) you may be able to "shop" around for a better deal. most rates are pretty close. Just be sure that you choose a solid company that has a good reputation over saving a buck. A home purchase is a large transaction and you want it to go as smoothly as possible.

Jeff Jenkel
0 votes
Yoann Baral…, Agent, San Diego, CA
Sat Aug 17, 2013
Hi Kodybear,

It really depends on the situation you are in. If the property attracts a lot of attention and thus many offers, the seller will obviously choose the best, which means that you may have to pay for all the closing costs.

However, when you write the offer to purchase, it could be a good starting point to offer 50/50 at least you and the seller are sharing the closing cost.

Everything is negotiable,

good luck

Yoann Baral-Baron
Allied Green Realty
619 995 9467
0 votes
Melissa Goss, , Center Moriches, NY
Fri Jul 26, 2013
Usually... there is no way to determine this. Sometimes half, sometimes none of it. Its primarily and most likely going to be a price you will have to pay in full as a buyer.
0 votes
Rene' De Bla…, , San Diego, CA
Thu Jul 25, 2013
Unfortunately, with the lack of inventory in the area, I have seen very few contracts with a seller concession. Those few that I have seen are no more than 1%.

0 votes
Hector Gaste…, Agent, Coronado, CA
Mon Jul 8, 2013
However, the higher the % of closing costs you ask for, the lower your % of getting the home in this market.
0 votes
Ron Thomas, Agent, Fresno, CA
Mon Jul 8, 2013
You do not have to rely on estimates and percentages:
In California, we use Escrow/Title Companies; they work for both the Buyer and the Seller.
Ask your Realtor for the name of your Title Company and your Escrow Officer.
Ask your Escrow officer for a hypothetical HUD1, using the numbers that you provide. You will see the total monies involved, broken down by Seller and Buyer, total Closing Costs and what is needed to Close the Escrow.
0 votes
Hector Gaste…, Agent, Coronado, CA
Sun Jul 7, 2013
It depends on the property, the buyer, the agents. Everything is negotiable.

Hector R. Gastelum
Realty Executives Dillon
REALTOR #01382940
efax 619-270-2516
0 votes
John Souerbry, Agent, Fairfield, CA
Sun Jul 7, 2013
As previously mentioned, closing costs are negotiable. If you have a property that is in demand (multiple offers over asking price, etc.), you have great leverage to negotiate paying less. If your property isn't in demand, you'll probably pay more. Just don't let anyone say to you "traditionally the seller pays this..." Everything is negotiable.
0 votes
Laportia Pau…, Agent, Huntsville, AL
Sun Jul 7, 2013
Well this is a loaded question because EVERYTHING is negotiable. So the bottom line is that sellers are responsible for their side of the closing costs such as half of taxes however your agent depending on your offer, home price, and condition of the home can always ask for sellers to pay all of closing or a dollar amount of closing or even arrange to pay half.

It's all a matter of what your agent has negotiated for you. Just remember that when dealing in real estate everything is negotiable and as long as you can ask the question all they can say is yes, no, or counter back with something they are more willing to do.f

So if you are currently working on a deal be sure to check with your agent and just make sure he/she is aware that you want say $6,000 or 100% of closing paid for the seller and you can be assured that the agent will try to negotiate the best terms for you.
0 votes
Lance King, Agent, San Francisco, CA
Sun Jul 7, 2013
Fees are calculate on a percentage basis as they are split differently in different areas depending on what is locally customary.

Have your agent get you a breakdown of how fees are split between buyer and seller so you can get a better understanding.

Best Regards,

Lance King/Owner-Managing Broker
King Realty Group

DRE# 01384425
0 votes
Robert Chome…, , San Diego, CA
Sun Jul 7, 2013
They don't generally pay a % of closing costs, they generally pay their portion of closing costs that is traditional for an area. Most parts of CA they pay the transfer tax and part of the title insurance. It's up to the buyer to negotiate to get the seller to pay a larger % of the overall closing costs.
0 votes
Cory La Scala, Agent, San Diego, CA
Sun Jul 7, 2013
Hi There,

The information you received so far is good. There are many variables that are property specific, so it's hard to give you a percentage without asking the necessary questions. When you're ready to list your property, your agent will prepare a Seller's Net Sheet, so you go in with a good idea. Not all agents prepare this the same, but if done correctly, the final number should be very close to your final closing costs.

Warm Regards,

Cory La Scala, REALTOR
Independence Realty
619-825-6421 Direct
619-884-3452 Cell
Lic # 01443391
0 votes
Frederick Re…, Agent, SAN DIEGO, CA
Sun Jul 7, 2013
It depends on where you are in the country. Here in San Diego the Buyer is saddled with the "lender related" closing costs and the Seller pays about 70% of the closing costs of the transaction (half of escrow,title insurance,transfer fees,etc). Typically a Seller doesn't pay any of the lender related closing costs.

Frederick Remick
619 519 3287
0 votes
Robert Boern…, Agent, El Cajon, CA
Sun Jul 7, 2013
While you are from San Diego but your post shows up in "Home Selling in Rancho Bernardo", I will comment on what is customary in the San Diego area.

While everything is negotiable, "usually" the seller pays the following closing costs:

1/2 the escrow fee
title insurance for the new owner (but not for their lender's title policy)
recording fees (for the deed but not any mortgage documents)
transfer taxes
a home warranty if included in the purchase contract
HOA document prep and transfer fee
natural hazard disclosures
Pest Inspection and Clearance (again, if it is part of the purchase contract)

Property taxes and HOA assessments are pro-rated between buyer and seller

Since some fees are fixed and others vary depending on the purchase price, the % will be much greater on a lower value property as compared to a high-dollar property. Brokerage commissions can be negotiated and can vary widely.

If you have any questions, please contact me as I really enjoy being a real estate broker and am happy to share my knowledge and experience.

Thank you,
Robert Boerner
Gecko Realty
0 votes
Maureen Bye…, Agent, Oceanside, CA
Sun Jul 7, 2013
To receive an estimate of sellers closing costs Which are a percentage of the purchase Price typically Plus paying a realtor's commission, and prorating property taxes, Homeowners association monthly dues and Homeowners insurance-If applicable- which are prepaid items, please contact your listing agent, title and escrow officers , Attorney or Banking entity closing your transaction and Request an estimated Itemization for you As seller on your closing settlement statement To give you a better idea of what your net Proceeds will be.
Web Reference:  http://www.coastal.com
0 votes
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